Erna Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,000 would be spent. Current earnings are $2.00 per share and the stock currently sells for $50 per share. There are 2,500 shares outstanding. Ignore taxes and other imperfections.

a.	Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b.	What will be the effect on the companys EPS and PE ratio under the two different scenarios? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a1. Price per share with dividend
a2. Shareholder wealth with dividend
a3. Price per share with repurchase
a4. Shareholder wealth with repurchase
b1. EPS with dividend
b2. PE with dividend
b3. EPS with repurchase
b4. PE with repurchase