repurchase versus cash dividend trantor corporation is deciding whether to payout 30 677915

Repurchase versus Cash Dividend. Trantor Corporation is deciding whether to payout $300 in excess cash in the form of an extra dividend or a share repurchase. Current earnings are $1.50 per share. and the stock sells for $15. The market value balance sheet before paying out the $300 is as follows:

Evaluate the two alternatives in terms of the effect on the price per share of the stock, the EPS, and the PE ratio.