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Earnings per share increase as a result of the repurchase

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ABC Ltd has 2,000,000 ordinary shares outstanding that are currently trading at a market price of $9.95 per share. It has earnings available to ordinary shareholders of $2441509. The firm is planning to use $1572140 of its earnings to repurchase some of its shares in the market at a price of $10.00 per share. By how much will earnings per share increase as a result of the repurchase?

Reference no: EM132548218

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