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Please show work, thanks! Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $18,360 would be spent. Current earnings are
Please show work, thanks!
Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $18,360 would be spent. Current earnings are $1.60 per share, and the stock currently sells for $135 per share. There are 4,000 shares outstanding. Ignore taxes and other imperfections. What is the current PE ratio? (without a dividend or repurchase) 84.38 If the company pursues the repurchase: What is the new number of shares outstanding? What is the new EPS? 1.66 What is the new PE ratio? (do not use rounded values!) If the company chooses the extra dividend: What is the new price? (ignore taxes) $ What is the new EPS? What is the new PE ratioStep by Step Solution
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