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Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. In either case, $27,000 would...

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Finance

Hodgkiss Corporation is evaluating an extra dividend versus ashare repurchase. In either case, $27,000 would be spent. Currentearnings are $2.70 per share, and the stock currently sells for $96per share. There are 4,500 shares outstanding. Ignore taxes andother imperfections.

What will the company’s EPS and PE ratio be under the two differentscenarios? (Do not round intermediate calculations andround your answers to 2 decimal places, e.g.,32.16.)

Extra DividendShare Repurchase
EPS$$
PE Ratio

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Hodgkiss Corporation is evaluating an extra dividend versus ashare repurchase. In either case, $27,000 would be spent. Currentearnings are $2.70 per share, and the stock currently sells for $96per share. There are 4,500 shares outstanding. Ignore taxes andother imperfections.What will the company’s EPS and PE ratio be under the two differentscenarios? (Do not round intermediate calculations andround your answers to 2 decimal places, e.g.,32.16.)Extra DividendShare RepurchaseEPS$$PE Ratio

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