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Samsung corporation has too much cash, so they are thinking about two options: a) An extra dividend b) Shares repurchase The total amount of spare

Samsung corporation has too much cash, so they are thinking about two options: a) An extra dividend b) Shares repurchase The total amount of spare cash that they have is 10.000. Current earnings are 5 per share, and the stock currently sells for 100 per share. There are 2.000 shares outstanding. Ignore taxes and other imperfections. What will be the price per share? What will be the effect on EPS and PE? What would you recommend Dividend or share repurchase?

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