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Allison Corp. has a market value equal to its book value. Currently, the firm has excess cash of $1,100 and other assets of $11,400. Equity

  1. Allison Corp. has a market value equal to its book value. Currently, the firm has excess cash of $1,100 and other assets of $11,400. Equity is worth $12,500. The firm has 2,500 shares of stock outstanding and net income of $10,800. What will be the new earnings per share (rounded to the nearest penny) if the firm uses its excess cash to complete a stock repurchase?

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