A firm has a market value equal to its book value . Currently , the firm has excess cash of $600 and other assets of $54,000. Equity is worth $6,000. The firm has 500 shares of stock outstanding and net income of $1,035. What will the new earnings per share be if the firm uses 25% of its excess cash to complete a stock repurchase?
A. 1.91
B.2.55
C. 1.27
D. 2.12
E.1.59