A firm has a market value equal to its book value. Currently, the firm has excess cash of $800 and other assets of $7,200. Equity is worth $8,000. The firm has 600 shares of stock outstanding and net income of $1,566. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?
1.61
2.41
2.01
3.21
2.68