Answer:
Extra Dividend:
Dividend per Share = $7,095 / 4,300
Dividend per Share = $1.65
Stock Price per share after Dividend payment = $59 - $1.65
Stock Price per share after Dividend payment = $57.35
Earnings per Share = $2.70
P/E Ratio = Price per Share / Earnings per Share
P/E Ratio = $57.35 / $2.70
P/E Ratio = 21.24
Share Repurchase:
Shares repurchased = $7,095 / $59
Shares repurchased = 120 Shares
Earnings per Share before Share repurchase = $2.70
Total Earnings = $2.70 * 4,300 = $11,610
Earnings per Share after Share repurchase = $11,610 / (4,300 –
120)
Earnings per Share after Share repurchase =
$2.78
P/E Ratio = Price per Share / Earnings per Share
P/E Ratio = $59 / $2.78
P/E Ratio = 21.22
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