1. Blue Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $0.82 per share and the stock currently sells for $40 per share. There are 2,100 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? Enter your answers rounded to 2 DECIMAL PLACES. NOTE: Fractional shares are possible
2. Dungeoness Corporation has excess cash of $1,700 that it would like to distribute to shareholders as an extra dividend. Current earnings are $1.00 per share, and the stock currently sells for $33 per share. There are 210 shares outstanding. Ignore taxes and other imperfections.If Dungeoness Corp. pays a cash dividend, what will be the dividend per share? After the dividend is paid, what will the price per share be? What are earnings per share (EPS) and the price earnings (P/E) ratio?Enter your answers rounded to 2 DECIMAL PLACES.
3. Shares in Growth Corporation are selling for $70 per share.There are 1 million shares outstanding.The company repurchases 450,000 shares.After the repurchase: How many shares will be outstanding?What will be the price per share?