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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 $6,000. Equity

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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 $6,000. Equity is worth $6,500. The firm has 650 shares of stock outstanding and net income of $780. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase? Multiple Choice $1.20 $.83 $1.30 $.71

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