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Blue Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.11 per share and

Blue Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.11 per share and the stock currently sells for $42 per share. There are 2,500 shares outstanding. Ignore taxes and other imperfections. If Blue Corp. pays a dividend, what will be the dividend per share? After the dividend is paid, how many shares will be outstanding and what will the price per share be

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