What will total investment be worth

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Just Right Incorporated is considering the option of an extra dividend versus a share repurchase and the impact of both decisions on the firm. Just Right plans to spend $85,000 in respect of both scenarios. Just Right's current earnings are $2.10 per share, and the stock currently sells for $45 per share. Just Right currently has 5,000 shares outstanding.

Question 1: If the company issues the dividend, what will your total investment be worth? If the company pursues a share repurchase what will be your total investment be worth?

Reference no: EM132562896

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