Evaluating an extra dividend versus a share repurchase. In either case, $16,320 would be spent. Current earnings are $3.10 per share, and the stock currently sells for $85 per share. There are 3,400 shares outstanding. Ignore taxes and other imperfections.
What will be the effect on EPS and PE ratio under the two different scenarios?
Extra Dividend Share Repurchase
EPS $ $
PE Ratio