C. $1.58 D. $1.56 E. $10.89 s has a market value equal to its book value. Currently, the firm has excess cash of $1,200, of $5,800, and 24. Oldtow n Mill income of $420. Wh id equity valued at $3,750. The firm has 250 shares of stock outstanding and net complete a stock repurchase? A. $1.83 B. $1.89 C. $1.96 will the new earnings per share be if the firm uses 25 percent of its excess cash to k repurchase? D. $2.00 E. $2.08 25. The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $2.2 million in annual pretax cost savings. The system costs $8.9 million and will be depreciated straight-line to zero over 5 years. Wildcat's tax rate is 34 percent, and the firm can borrow at 9 percent. Lambert Leasing Company has offered to lease the drilling equipment to Wildeat for payments of $2.31 million per year. Lambert's policy is to require its lessees to make payments at the start of the year. What is the NAL for Wildcat? A. 1,419,841 B. 1,523,271 C.-468,255 D. -2,151,275 e. none of the above 26. Consider a firm with a market value equal 100. The firm is financed with a zero- coupon bond with a face value of 100, maturing at the end of the year. At the end of the year the value of the firm can be either 130 or 80 The firm has 10 invested in one-year T-bills earning 10%. The firm has Just discovered a new project. Thi project requires an investment of 10 and will be worth at the end of the year, either 8 (when the firm is