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PQR Co has 80,000 shares of stock outstanding with a market price of $6 per share. Total earnings for the current year is $127,800. The

PQR Co has 80,000 shares of stock outstanding with a market price

of $6 per share. Total earnings for the current year is $127,800. The firm has cash of $45,000 in excess of what is necessary to fund its positive NPV projects. The firm has other assets worth $475,000 (market value). What will be the firm's earnings per share after the repurchase if the firm uses the $45,000 excess cash to buy back stock at $5 per share ?

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