A company has the following: 1,000,000 shares outstanding A current stock price of $25 $750,000 in net income for the most recent year A P/E ratio of 33.3 $4,000,000 of excess cash The company...

A company has the following:

1,000,000 shares outstanding

A current stock price of $25

$750,000 in net income for the most recent year

A P/E ratio of 33.3

$4,000,000 of excess cash

The company anticipates constant performance in the upcoming year (that is, same net income and constant P/E). It is contemplating issuing a one-time dividend for the full amount of the excess cash OR buying back 125,000 shares of stock at a premium price of $28 per share. You own 1,000 shares. Which of the 2 options provides the best shareholder return (provide the math support)?