Evaluating extra dividend versus share repurchase

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Reference no: EM131844124

Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. In either case, $25,960 would be spent. Current earnings are $2.80 per share, and the stock currently sells for $95 per share. There are 4,400 shares outstanding. Ignore taxes and other imperfections. What will the company’s EPS and PE ratio be under the two different scenarios?

Reference no: EM131844124

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