A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity is worth $6,000. The firm has 300 shares of stock outstanding and net income of $783. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?

2.41

2.01

1.61

3.21

2.68