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B&B Corporation has excess cash of $300 and other assets of $10,500. Their equity is worth $10,800. The firm has 900 shares of stock outstanding
B&B Corporation has excess cash of $300 and other assets of $10,500. Their equity is worth $10,800. The firm has 900 shares of stock outstanding and net income of $1,200. Assume that B&B's market value is equal to its book value. What will the new earnings per share be if the firm spends its excess cash on a stock repurchase?
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