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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 $8,100. Equity
A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $8,100. Equity is worth $9,000. The firm has 600 shares of stock outstanding and net income of $1080. What will the new earnings per share be if the firm uses 25 % of its excess cash to complete a stock repurchase?
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