Dungeoness Corporation has excess cash of $2,000 that it would like to distribute to shareholders through a share repurchase. Current earnings are $1.00 per share, and the stock currently sells for $25 per share. There are 250 shares outstanding. After the share repurchase, what will be the price earnings (P/E) ratio? Ignore taxes and other imperfections. 08 12 0 25 Using market values rather than book values for cost of capital computations insures that the firm: does not ignore the value of retained earnings. gets the full value of the debt tax shield. will not invest in negative NPV projects. O uses values investors are willing to pay for the firm's securities