| Attempt 1/5 for 10 pts. Part 3 Would shareholders be better off with a...
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| Attempt 1/5 for 10 pts. Part 3 Would shareholders be better off with a stock repurchase compared to a dividend payment (ignore taxes and signalling effects)? Yes, since it increases EPS. No, since the higher EPS comes at a cost. No, since EPS won't be higher in the future. Yes, since the company bought their shares. Submit Intro A company has had net income of $22 million in its most recent year and wants to distribute 40% of its net income to shareholders through either dividends or stock repurchases. The firm currently has 2 million shares outstanding, trading at $50. B A ttempt 1/10 for 10 pts. Part 1 What is EPS after a dividend payment? 0+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What is EPS after a stock repurchase? 1+ decimals Submit
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