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The market value of a firm under consideration is equal to its book value. Currently, this firm has excess cash of $700 and other assets
The market value of a firm under consideration is equal to its book value. Currently, this firm has excess cash of $700 and other assets of $9,100. Equity is worth $9,800. The firm has 700 shares of stock outstanding and net income of $750. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
Multiple Choice
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$.93
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$1.07
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$2.08
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$1.08
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$1.15
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