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Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. In either case, $23,940 would be spent. Current earnings are $3.00 per share, and the stock currently sells for $93 per share. There are 4,200 shares outstanding. Ignore taxes and other imperfections. What will the company’s EPS and PE ratio be under the two different scenarios?

Financial Management, Finance

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