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Erna Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,000 would be spent Current earnings are $1.50 per share and

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Erna Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,000 would be spent Current earnings are $1.50 per share and the stock currently sells for $50 per share. There are 4,000 shares outstanding. Ignore taxes and other imperfections. What will be the effect on the company's EPS and PE ratio under the two different scenarios? 1.50&30.0;1.7&30.01.90&25.5;2.3&25.5

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