A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000 and other assets of $4,000. Equity is worth $5,000. The firm has 500 shares of stock outstanding and net income of $600. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

Options:

$1.2

$1.5

$1.8

$2.0