1.Balley Scop has net income of $8,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $30 a share. Ridgdill is considering a plan in which it will use available cash to repurchase 15% of its shares at the current stock price. The repurchase is expected to have no effect on either net income or the company's stock price. What will its EPS and P/E ratio be following the stock repurchase?

$ 8.75; 3.43

$ 8.00; 3.75

$ 9.41; 3.19

$10.50; 2.86

$10.00; 3.00