Salmon Arm Corporation is evaluating an extra dividend versus 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.

a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

Alternative I	Extra dividend
Price per share	$
Shareholder wealth per share	$

Alternative II	Repurchase
Price per share	$
Shareholder wealth per share	$

b. What will the company's EPS and P/E ratio be under the two different scenarios? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

Alternative 1
EPS	$
P/E ratio

Alternative II
EPS	$
P/E ratio