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A firm has $400,000 in cash, $1,100,000 in other assets and $0 in debt. Its net income for the year is $200,000 and its current
A firm has $400,000 in cash, $1,100,000 in other assets and $0 in debt. Its net income for the year is $200,000 and its current shares outstanding is 200,000. A firm wants to return $150,000 to shareholders. What is the difference in the firm's earnings per share if management decides to pay shareholders a cash dividend versus repurchasing stock?
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