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A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $10,500. Equity
A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $10,500. Equity is worth $10,800. The firm has 900 shares of stock outstanding and net income of $1,200. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase? Multiple Choice
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