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Allison's has a market value equal to its book value. Currently, the firm has excess cash of $1,100 and other assets of $12,400. Equity is
Allison's has a market value equal to its book value. Currently, the firm has excess cash of $1,100 and other assets of $12,400. Equity is worth $13,500. The firm has 2,700 shares of stock outstanding and net income of $10,800. The firm uses its excess cash to complete a stock repurchase.
What will be the change in price-to-earnings ratio?
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