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A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $5,100. Equity
A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $5,100. Equity is worth $6,000. The firm has 600 shares of stock outstanding and net income of $700. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?(Show work)
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