The following information relates to Nasser & Sons Co.

Outstanding number of shares

200,000 shares

Net income

SAR 500,000

Tax rate 0

Market Stock price = Repurchase price

SAR 100 per share

Book Stock Value

SAR 105 per share

Suppose Nasser & Sons Co. intends to repurchase50,000shares with the current market price.

EPS after the repurchase on the assumption that the company will borrow the amount needed for the repurchase (the interest rate = 7%).?