After investing in machinery, equipment, and Project A and B, your pro forma Q15 balance sheet shows a cash balance of $1,100,000. Your current stock price is $65.58(closing Q14) and your most recent dividend, for Q14, is $0.18. The project cash balance assumes a continuation of the $0.18 dividend. Your company has 1,035,000 shares outstanding.

What should you do with the cash? Dividend, shares repurchases, or both?

The following data will help you to determine the dividend that you could pay. You may use your FinGame manual for assistance.

Estimated Q15 EPS from pro forma=$1.61

Actual

Q14 EPS=$0.18 Q13 EPS=$1.19 Q12 EPS=$1.55 Q11 EPS=$1.27