What will the new earnings per share be if the firm

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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

Reference no: EM131012815

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