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Big Industries has the following market-value balance sheet The stock currently sells for $20 a share, and there are 1120 shares outstanding. The firm will

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Big Industries has the following market-value balance sheet The stock currently sells for $20 a share, and there are 1120 shares outstanding. The firm will enher pay a S1 per share dividend or repurchase $1,120 worth of stock. Ignore taxes. Liabilities and Assets Equity Cash $4,100 Debt $10,600 Fixed assets 28,600 Equity 22,400 a. What will be the subsequent price per share if the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar) c. If total earnings of the firm are $8,000 a year, find earnings per share if the firm pays a dividend. (Do not round Intermediate calculations. Round your answer to 3 decimal places.) d. If total earnings of the firm are $8.000 a year, now find eamings per share if the firm repurchases stock. (Do not round intermediate calculations. Round your answer to 3 decimal places.) e. If total earnings of the firm ore $8.000 a year, find the price-earrings ratio If the firm pays a dividend. (Do not round intermediate calculations. Round your answer to 2 decimal places.) f. If total earnings of the firm are $8,000 a year, find the price earnings ratio If the firm repurchases stock. (Do not round intermediate calculation. Round your answer to 2 decimal places.) 9. Adherents of the dividends-are-good' school sometimes point to the fact that stocks with high dividend payout ratios tend to sell at above average price-earnings multiples. Is Big Industries' P/E ratio higher if it pays a dividend? a Stock price b. Stock price be per share per share Fixed assets 28, 600 Equity 22,400 a. What will be the subsequent price per share If the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar) c. If total earnings of the firm are $8,000 a year, find earnings per share if the firm pays a dividend (Do not round intermediate calculations. Rou answer to 3 decimal places.) d. If total earnings of the firm are $8,000 a year, now find earnings per share if the firm repurchases stock. (Do not round intermediate calculatio Round your answer to 3 decimal places.) e. If total earnings of the firm are $8,000 a year, find the price-earnings ratio of the firm pays a dividend. (Do not round intermediate calculations your answer to 2 decimal places.) f.If total earnings of the firm are $8.000 a year, find the price-earnings ratio If the firm repurchases stock (Do not round intermediate calculation Round your answer to 2 decimal places.) 9. Adherents of the "dividends-are-good school sometimes point to the fact that stocks with high dividend payout ratios tend to sell at above-ave price-earnings multiples. Is Big Industries' P/E ratio higher if it pays a dividend? a. Stock price b. Stock price per share per share c. EPS d. EPS e. Price-earnings ratio f. Price-camnings ratio Is Big Industries P/E ratio higher if it g. pays a dividend

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