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A firm has 50,000 shares of stock outstanding, net income of $50,000, and a PE ratio of 10. What will the firms PE ratio be

A firm has 50,000 shares of stock outstanding, net income of $50,000, and a PE ratio of 10. What will the firms PE ratio be if the firm repurchases 25,000 shares? Assume all else remains constant. 12.0 13.0 5.0 7.5

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