Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.01 per share and
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.01 per share and the stock currently sells for $37 per share. There are 1,600 shares outstanding. Ignore taxes and other imperfections.
After the $3.13 dividend, the price falls to $33.87 per share. What are earnings per share (EPS) and the price earnings (P/E) ratio? Enter your answers rounded to 2 DECIMAL PLACES.
EPS=
P/E Ratio =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started