A firm is considering two alternatives: dividend versus a share repurchase. In either case, a firm would spend $$500,000.$ Net income of the company is $$1,000,000,$ and the stock currently sells for $$50$ per share. There are $100,000$ shares outstanding. Ignore taxes and other imperfections.

a$)$ What will be EPS if a firm decides to give dividend?

b$)$ What will be PE ratio if a firm decides to give dividend?

c$)$ What will be EPS if a firm decides to use a share repurchase?

d$)$ What will be PE ratio if a firm decides to use a share repurchase?