What is the stock price eps pe ratio and total equity value

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A corporation is evaluating an extra dividend versus an open market share repurchase. in either case, $16,000 would be spent. Current earnings are $4.5 per share. and the stock currently sells for $80 per share. There are 2000 shares outstanding. Ignore taxes and other imperfections in answering the following two questions:

1. What is the stock price, EPS, P/E ratio and total equity value if the firm chooses to do a repurchase?

2. What is the stock price, EPS, P/E ratio and total equity value if the firm chooses to pay dividend?

Reference no: EM13396894

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