Its excess cash to complete stock repurchase

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Reference no: EM131566365

Jenningston Mills has a market value equal to its book value. Currently, the firm has excess cash of $1, 200, other ef $5, 800, and equity valued at $3, 750. The firm has 250 shares of stock outstanding and net income of $420. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?

Reference no: EM131566365

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