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Poise Corporation is evaluating an extra dividend versus a share repurchase. In either case $4,200 would be spent. Current earnings are $2.10 per share, and

Poise Corporation is evaluating an extra dividend versus a share repurchase. In either case $4,200 would be spent. Current earnings are $2.10 per share, and the stock currently sells for $70 per share. There are 600 shares outstanding. 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's wealth. (3 Marks) b. What will be the effect on Poise's EPS and PE ratio under the two different scenarios? (Do not round the intermediate computations. Round the final answers to 2 decimal places. Use unrounded EPS value for computing P/E ratio.) (7 Marks)

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