Question
Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,140 would be spent. Current earnings are $3.50 per share,
Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,140 would be spent. Current earnings are $3.50 per share, and the stock currently sells for $89 per share. There are 3,800 shares outstanding. Ignore taxes and other imperfections.What will the company's EPS and PE ratio be under the two different scenarios?
Extra Dividend Share Repurchase
EPS
PE Ratio
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
