Flashback corporation is evaluating an extra dividend


Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $35,510 would be spent. Current earnings are $3.30 per share, and the stock currently sells for $78 per share. There are 5,300 shares outstanding. Ignore taxes and other imperfections. Requirement 1: What will Flashback’s EPS and PE ratio be under the two different scenarios? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Extra Dividend Share Repurchase EPS $ $ PE Ratio Requirement 2: In the real world, which of these actions would you recommend?

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Financial Management: Flashback corporation is evaluating an extra dividend
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