I WILL VOTE!!!

Cash Brown Corporation has the following market value balance sheet. The stock currently sells for 20 a share, and there are 1,000 shares outstanding. The firm will either pay a C1 per share dividend or repurchase C1,000 worth of stock. Ignore taxes. Assets Liabilities and Equity (2,000 Debt C10,000 Fixed assets 28,000 Equity 20,000 Instructions: 1. For each scenario, determine the subsequent price per share, earnings per share, and price-earnings ratio. (15 points) 2. How are share repurchases an alternative to dividends, and why might investors prefer them? Explain. (5 points)