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Shan Company will either payout $4,000 extra in dividends or do a $4,000 share repurchase. Its current EPS is $0.90 and its stock is

Shan Company will either payout $4,000 extra in dividends or do a $4,000 share repurchase. Its current EPS is $0.90 and its stock is currently trading at $35/share. Shan has 150 shares outstanding. Ignoring taxes. a) How will each alternative affect share price and shareholder wealth? b) How will each alternative impact EPS and PE ratio?

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