Flemington farms is evaluating an extra dividend versus a


Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earnings are $2.10 per share, and the stock currently sells for $52 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections. The PE ratio will be ____ if the firm issues the dividend as compared to ____ if the firm does the share repurchase.

22.38; 22.38

24.87; 22.38

20.23; 24.87

22.38; 20.23

20.23; 22.38

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Financial Management: Flemington farms is evaluating an extra dividend versus a
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