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Erna Corporation is evaluating an extra dividend versus a share repurchase. In either case, $515000 would be spent. Current earnings are $2.50 per share, and

Erna Corporation is evaluating an extra dividend versus a share repurchase. In either case, $515000 would be spent. Current earnings are $2.50 per share, and the stock currently sells for $50 per share. There are 4000 shares outstanding. Ignore taxes and other imperfections.

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