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Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case. $20,000 would be spent. Current earnings are $2.00 per si stock

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Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case. $20,000 would be spent. Current earnings are $2.00 per si stock currently sells for $50 per share. There are 2.500 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. Do not round Intermediate calculations ancl round your answers to 2 decimal places, e.g., 3210.) Extra dividend Price per share $ Shareholderwealth $ 8.00 42.00 Repurchase Price per share Shareholder wealth b. What will the company's EPS and PE ratio be under the two different scenarios? (Do not rounel Intermedlate calculatlons and round your answers to 2 clecimal places, .., 3216.) Extra dividend EPS PE ratio Repurchase EPS PE ratio

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