A firm has a market value equal to its book value currently


A firm has a market value equal to its book value. Currently, the firm has excess cash of $700 and other assets of $6,300. Equity is worth $7,000. The firm has 400 shares of stock outstanding and net income of $684. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?

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Financial Management: A firm has a market value equal to its book value currently
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