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A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $4,500. Equity
A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $4,500. Equity is worth $5,000. The firm has 400 shares of stock outstanding and net income of $936. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase? O 1.80 O 2.40 O 2.16 O 2.88 1.44
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
