++

CDL Ltd is deciding whether to pay out R100000 in excess cash in the form of an extra dividend or implement a share repurchase. Net profit after tax is R155000 and the share sells for R10. Their summarised statement of Financial Position prior to the dividend payment is as follows: Evaluate each alternative (i.e. pay the dividend or repurchase the shares) by calculating the: 2.1 Number of shares in issue. 2.2 Dividends per shares (only for the first alternative, i.e. pay the dividend). 2.3 New share price