Tangshan Mining Company Has Released the Following Information

question 69

Essay

Tangshan Mining Company has released the following information. (a)What are Tangshan Mining's current earnings per share?
(b)What is Tangshan Mining's current P/E ratio?
(c)Tangshan Mining wants to use half of its earnings either to pay shareholders dividends or to repurchase shares for inclusion in the firm's employee stock ownership plan.If the firm pays a cash dividend,what will be the dividend per share received by existing shareholders?
(d)Instead of paying the cash dividend,what if the firm uses half of its earnings to pay $55 per share to repurchase the shares,what will be the firm's new EPS? What should be the firm's new share price?
(e)Compare the impact of a stock dividend and stock repurchase on shareholder wealth.

---

Definitions:

Marketing Communications

Marketing communications encompass various strategies and channels used by companies to convey their brand messages, promote products or services, and engage with their target audience.

Persuasive Writer

An individual skilled in crafting text designed to convince or influence readers to adopt a specific viewpoint or take action.

Crisis Manager

A professional specialized in handling public relations crises, devising strategies to mitigate damage to reputation and navigating through challenging situations to regain public trust.

Marketing Communications

The various methods and tools companies use to relay information about their products and services to potential customers, including advertising, public relations, and social media.