A company has 1,000 shares. MPS is Rs 20. The firm has either to pay Re 1 per share as dividend or repurchase shares for Rs 1,000. Earning is Rs 2,000 with no tax. Find: (a) MPS in case of either of...

A company has 1,000 shares. MPS is Rs 20. The firm has either to pay Re 1 per share as dividend or repurchase shares for Rs 1,000. Earning is Rs 2,000 with no tax. Find:

(a) MPS in case of either of the alternatives

(b) EPS under each alternative