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Sterling Resources is evaluating an extra dividend versus a share repurchase. In either case, a total of $4,000 would be spent. Current earnings are $2.10
Sterling Resources is evaluating an extra dividend versus a share repurchase. In either case, a total of $4,000 would be spent. Current earnings are $2.10 per share, and the stock currently sells for $46 per share. There are 800 shares outstanding. Ignoring taxes and other imperfections, what would be earnings per share if the company decides to pay out via a share repurchase? $4.00 per share $2.10 per share $5.00 per share None of these values are correct.
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