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A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity

A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity is worth $6,000. The firm has 500 shares of stock outstanding and net income of $1,035. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?

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