Danielle Care International, based in Australia, provides in-home medical assistance to the elderly. The firm has earned a net income of A\($7\) million that it plans to use to repurchase shares of the firm’s common stock, which is currently selling for A\($45\) per share.

Danielle Care has 18 million shares of common stock outstanding.

a. What fraction of the firm’s shares can the firm repurchase for A\($7\) million?

b. If the share repurchase has no impact on the firm’s net income, what will be its earnings per share after the repurchase?