Question
Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. In either case, $19,240 would be spent. Current earnings are $3.40 per share, and
Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. In either case, $19,240 would be spent. Current earnings are $3.40 per share, and the stock currently sells for $88 per share. There are 3,700 shares outstanding. Ignore taxes and other imperfections.
What will the companys EPS and PE ratio be under the two different scenarios?
| Extra Dividend | Share Repurchase | |
| EPS | $ | $ |
| PE Ratio | $ | $ |
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States And The Reemergence Of Global Finance
Authors: Eric Helleiner
1st Edition
0801428599, 978-0801428593
