Dawlish Ltd. has just sold pff its performing division and received $1,600,000. The management is undecided on what to do with the proceeds, either pay shareholders special dividends or repurchase shares.

what is the company's current P/E multiple? Can you please see the picture with the other questions?

Sales EBIT $8,000,000 $2,000,000 Net income $1,500,000 Shares outstanding Share price 800,000 $20.00 Required: a) (2 marks) What is the company's current P/E multiple? b) (2 marks) If management decides to pay a special dividend, what impact would you expect this to have on the value of the shares? c) (2 marks) If management decided to repurchase shares, and assuming earnings stay constant, what would you expect the company's new earnings per share (EPS) be? d) (4 marks) In your own words explain how an investor's tax situation would impact their preference for dividends or share repurchases.