Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,300 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,300 worth of stock. Ignore taxes.

Assets | Liabilities and Equity | ||||||

Cash | $ | 8,000 | Debt | $ | 11,500 | ||

Fixed assets | 29,500 | Equity | 26,000 | ||||

**a. **What will be the subsequent price per share if the firm pays a dividend?

**b. **What will be the subsequent price per share if the firm repurchases stock? **(Round your answer to the nearest dollar.)**

**c.** If total earnings of the firm are $32,300 a year, find earnings per share if the firm pays a dividend. **(Do not round intermediate calculations. Round your answer to 3 decimal places.)**

**d.** If total earnings of the firm are $32,300 a year, now find earnings per share if the firm repurchases stock. **(Do not round intermediate calculations. Round your answer to 3 decimal places.)**

**e. **If total earnings of the firm are $32,300 a year, find the price-earnings ratio if the firm pays a dividend. **(Do not round intermediate calculations. Round your answer to 2 decimal places.)**

**f. **If total earnings of the firm are $32,300 a year, find the price-earnings ratio if the firm repurchases stock. **(Do not round intermediate calculations. Round your answer to 2 decimal places.)**

**g.** Adherents of the “dividends-are-good” school sometimes point to the fact that stocks with high dividend payout ratios tend to sell at above-average price-earnings multiples. Is Big Industries’ P/E ratio higher if it pays a dividend

PARTS D- G TO BE ANSWERED PLEASE