A firm is paying a dividend of $$1\mathrm{.}09$ per share today. There are $225,000$ shares outstanding with a market price of $$31\mathrm{.}17$ per share prior to the dividend payment.

Ignore taxes. Before the dividend, the company had earnings per share of $$2\mathrm{.}11.$ As a result of this dividend, the:

$$ retained earnings will decrease by $$225,000.$

$$ retained

earnings will increase by $$245,250.$

$$ total value of the company will not change.

$$ earnings per share will increase to $$3\mathrm{.}20.$

$$ price$-$earnings ratio will be $14\mathrm{.}26.$