A firm has a market value equal to its book value. Currently, the firm has excess cash of $800 and other assets of $7,200. Equity is worth $8,000. The firm has 500 shares of stock outstanding and net income of $855. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?

a. 2.10

b. 1.05

c. 1.75

d. 1.58

e. 1.32