The owners of HM Hornes Company are several wealthy Texans. The company earned $3.5 million after taxes this year, with 1.0 million shares outstanding, earnings per share were $3.50, shares have recently sold for $72.00. among current shareholders. Two dollars of this value is explained by investors' anticipation of a cash dividend. As Chief Financial Officer of HM Hornes, you have completed the alternative of repurchasing some of the company's common stock with a self-purchase offer at $72.00 per share.

1. How many common shares can the company repurchase if it selects this alternative?
2. What is the earnings per share after the buyback?
3. What is the most convenient option between paying cash dividends or repurchasing?