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Business, 17.06.2021 20:40 Carlosruelas2824

Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $13,000 would be spent. Current earnings are $1.30 per share, and the stock currently sells for $52 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections. Required:
a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share.
b. What will the company's EPS and P/E ratio be under the two different scenarios?

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Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $13,000...
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