Question
Para Atlantic Corporation is evaluating an extra cash dividend versus a share repurchase. In either case the total amount to be paid out is 10000.
Para Atlantic Corporation is evaluating an extra cash dividend versus a share repurchase.
In either case the total amount to be paid out is 10000.
Today the EPS are 5. And the share is selling in the market at 71.
The company does not pay taxes at all, and the have 10000 common shares outstanding.
In case thy make the cash dividend, how much is the value for one shareholder that holds one share?
How much are EPS and P/E ratio?
In case you make a shares repurchase, how much is the value for one shareholder that holds one share?
How much are EPS and P/E ratio?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
