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Startup Pipe has a market value equal to its book value. Currently, the company has excess cash of $14,652, other assets of $152,900, and equity
Startup Pipe has a market value equal to its book value. Currently, the company has excess cash of $14,652, other assets of $152,900, and equity valued at $144,300. There are 6,500 shares of stock outstanding and net income is $18,000. What will the new earnings per share be if the firm decides to use 50 percent of its excess cash to complete a stock repurchase?
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$2.77
$1.85
$1.97
$2.92
$3.02
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