1) Karakas Cheese Factory has earnings available for common stockholders of $4 million and has 500000 shares of common stock outstanding at $55 per share. The firm will distribute 50% of its earnings and retain the rest. a) Calculate the firm's current earnings per share (EPS). &$ 4m/500 500.000 55/8 EPS b) Calculate the firm's current price-to-earnings (P/E) ratio. 6,875 c) Calculate the dividend per share if the firm chooses to pay only cash dividends. 45/500.000 d) The firm can repurchase stock at $58 per share. If the firm chooses stock 2m repurchase instead of cash dividends, how many shares can be purchased? 34,483 2/58 e) How much will the EPS be after the proposed repurchase? What will the market price be if the stock sells at the old P/E ratio? 413 f) Compare the impact of a cash dividend and stock repurchase on shareholder wealth (Use no more than 25 words). T