X Limited has earnings available for ordinary shares of $2 Million and has 500000 issued ordinary shares at $60 per shares in cash dividends. a)Calculate the firm's current EPS and P/E ration b) if the firm can repurchase shares at $60 per share, how many shares can be purchased in lieu of making the proposed cash dividend payment?

c) How much will EPS be after the proposed repurchase? Why?

D) If the share sells at the old P/E ratio, what will the market price be after the repurcahse?

E) compare and contrast the earnings per shares before and after the proposed repurchase.