Question 9 - Dragonne is trying to choose between an additional dividend and a share buyback. In both cases, you would have to spend $2,500. Current earnings are $0.80 per share, and shares are currently trading at $30 per unit. There are 150 shares outstanding. Disregard taxes and other imperfections to answer the first two questions. a) Evaluate the two options based on their effect on the price per share and the shareholder wealth. b) What will be the effect on the company's EPS and P/E ratio with each of these options? c) In the real world, which of these actions would be preferable? Justify your