KiloMetersGo Ltd ("KMG") is an entity listed on the AltX of the Johannesburg Stock Exchange ("JSE") in the consumer services sector. The entity was established in April 2015 and has a 28 February-financial yearend. KMG was started by a few entrepreneurs who identified the demand for safe yet reliable and easily accessible transport in South Africa. The entrepreneurs themselves did not have access to sufficient funds - either their own or by means of qualifying for a loan - in order to purchase the required vehicles or pay remuneration for employees. They did, however, have motivation, and together they came up with the idea of using other people's vehicles rather than obtaining their own assets. From this idea, KMG was established and an online app was developed, where people with road-safe vehicles and valid driver's licenses may register as drivers. Members of the public who are in need of transport may go onto the app and order themselves an instant driver, who will transport them at an agreed fee per kilometre to their required destination. The driver needs to pay a percentage of the required fee over to KMG. KMG provides assurance to the user of safe transport by ensuring that the licenses and vehicles of the drivers listed on the app are inspected on a regular basis and all trips are registered and monitored via the app. Users may also give feedback on the app which KMG follows up on, if there is any reason for concern. KMG's operation also provides a source of income to unemployed public members with vehicles. KMG's business operations and model was considered an innovation in the South African transport industry which led to great success for the applicable entity. Consequently, KMG is considered to be, what is referred to as a "disruptive business model". Ever since, the entity has gone from strength to strength and by 2018 had grown enough to list on the AltX. One KMG ordinary share can currently be purchased for R800 on the JSE. The following is an extract of KMG's financial statements for the 2023-financial year: \begin{tabular}{|l|r|r|} \hline Total current liabilities & 4137 & 4378 \\ \hline & & \\ \hline Total Equity and Liabilities & 20760 & 19819 \\ \hline & & \\ \hline & Singular & Singular \\ \hline Number of shares in issue & 15000 & 15000 \\ \hline \end{tabular} After assessing the entity's current financial figures, including the cash flow projections, the directors have decided to reward the shareholders for their provision of funds to KMG by allocating R425 000 of the current available funds to this cause. KMG will distribute this amount to the shareholders either by means of a sharebuyback or dividend. REQUIRED: Assist KMG Ltd in the decision on whether a share-buyback or declaration of dividends should be performed to compensate the shareholders for their investment by calculating the effect on the following figures for both options: 2.1 Share price of KMG Ltd. (7 marks) 2.2 Earnings per share ("EPS") of KMG Ltd. (5 marks) 2.3 P/E ratio of KMG Ltd. (4 marks) 2.4 Discuss considerations KMG Ltd should take into account when deciding between the share-buyback or a declaration of dividends, and conclude which option is advisable. (5 marks) Round to two decimal places. Remember, quantities are express as integers. KiloMetersGo Ltd ("KMG") is an entity listed on the AltX of the Johannesburg Stock Exchange ("JSE") in the consumer services sector. The entity was established in April 2015 and has a 28 February-financial yearend. KMG was started by a few entrepreneurs who identified the demand for safe yet reliable and easily accessible transport in South Africa. The entrepreneurs themselves did not have access to sufficient funds - either their own or by means of qualifying for a loan - in order to purchase the required vehicles or pay remuneration for employees. They did, however, have motivation, and together they came up with the idea of using other people's vehicles rather than obtaining their own assets. From this idea, KMG was established and an online app was developed, where people with road-safe vehicles and valid driver's licenses may register as drivers. Members of the public who are in need of transport may go onto the app and order themselves an instant driver, who will transport them at an agreed fee per kilometre to their required destination. The driver needs to pay a percentage of the required fee over to KMG. KMG provides assurance to the user of safe transport by ensuring that the licenses and vehicles of the drivers listed on the app are inspected on a regular basis and all trips are registered and monitored via the app. Users may also give feedback on the app which KMG follows up on, if there is any reason for concern. KMG's operation also provides a source of income to unemployed public members with vehicles. KMG's business operations and model was considered an innovation in the South African transport industry which led to great success for the applicable entity. Consequently, KMG is considered to be, what is referred to as a "disruptive business model". Ever since, the entity has gone from strength to strength and by 2018 had grown enough to list on the AltX. One KMG ordinary share can currently be purchased for R800 on the JSE. The following is an extract of KMG's financial statements for the 2023-financial year: \begin{tabular}{|l|r|r|} \hline Total current liabilities & 4137 & 4378 \\ \hline & & \\ \hline Total Equity and Liabilities & 20760 & 19819 \\ \hline & & \\ \hline & Singular & Singular \\ \hline Number of shares in issue & 15000 & 15000 \\ \hline \end{tabular} After assessing the entity's current financial figures, including the cash flow projections, the directors have decided to reward the shareholders for their provision of funds to KMG by allocating R425 000 of the current available funds to this cause. KMG will distribute this amount to the shareholders either by means of a sharebuyback or dividend. REQUIRED: Assist KMG Ltd in the decision on whether a share-buyback or declaration of dividends should be performed to compensate the shareholders for their investment by calculating the effect on the following figures for both options: 2.1 Share price of KMG Ltd. (7 marks) 2.2 Earnings per share ("EPS") of KMG Ltd. (5 marks) 2.3 P/E ratio of KMG Ltd. (4 marks) 2.4 Discuss considerations KMG Ltd should take into account when deciding between the share-buyback or a declaration of dividends, and conclude which option is advisable. (5 marks) Round to two decimal places. Remember, quantities are express as integers