Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case

$$5,500$ would be spent. Current earnings are $$\mathrm{.}95$ per share, and the stock currently sells for $$30$

per share. There are $230$ shares outstanding. Ignore taxes and other imperfections.

a$.$ What will be the effect on Flychucker's EPS and PE ratio under the two different scenarios?

$7$ points

b$.$ In the real world, which of these actions would you recommend? Why? $3$ points