A company has 1 million shares outstanding and its net income is $2,000,000. The company decides to use $10 million in excess cash to repurchase shares in the open market. The companys shares are trading at $50 per share.

If the company uses the entire $10 million of excess cash to repurchase shares at the market price, the companys earnings per share will be closest to:

Group of answer choices

A. $2.00.

B. $2.08.

C. $2.30.

D. $2.50.