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A firm has a market value equal to its book value, excess cash of $1,000, and equity worth $17,800. The firm has 5,000 shares of
A firm has a market value equal to its book value, excess cash of $1,000, and equity worth $17,800. The firm has 5,000 shares of stock outstanding and net income of $31,200. What will the new earnings per share be if the firm uses its excess cash to complete stock repurchase?
$7.20
$6.50
$6.61
$5.89
$6.23
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