Question 3: (50 marks) Paradox Corporation is evaluating an extra dividend verses a share repurchase. In either case, $14,500 would be spent. Current earnings are $1.65 per share, and the stock currently sells for $58 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections in answering the following questions: Required 1. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth. 2. What will be the effect on Paradox Corporation's EPS and P/E ratio under the two different scenarios? 3. In the real world, which of these actions would you recommend? Why