Middletower Corporation is evaluating to do a share repurchase instead of the traditional $4 dividend per share. Current net income is $8 million, and the stock currently sells for $85 per share, for a market capitalization of $102 million. 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. b. What will be the effect on Middletower Corporations EPS and PE ratio under the two different scenarios?