Question
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $4,500 would be spent. Current earnings are $0.96 per share and
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $4,500 would be spent. Current earnings are $0.96 per share and the stock currently sells for $43 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections.
After the $2.25 dividend, the price falls to $40.75 per share. What are earnings per share (EPS) and the price earnings (P/E) ratio?
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
