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(b). NOP Ltd reports $1.5 earnings per share (EPS) and plans to distribute $1 million excess cash through either cash di
Posted: Sat Nov 27, 2021 5:23 pm
by answerhappygod
- B Nop Ltd Reports 1 5 Earnings Per Share Eps And Plans To Distribute 1 Million Excess Cash Through Either Cash Di 1 (86.89 KiB) Viewed 42 times
(b). NOP Ltd reports $1.5 earnings per share (EPS) and plans to distribute $1 million excess cash through either cash dividends or share repurchase. The future earnings of the
company will remain constant after the distribution of cash. Without calculation, determine how the distribution of cash through cash dividends or share repurchases will influence the values in the table below (Increase, Decrease, Unchanged). Ignore market imperfections such as transaction costs, taxes and asymmetric information. (8 marks) Cash dividends Share repurchase Share price Number of shares EPS Price/EPS (P/E ratio)