Question: 4. XML has a market value equal to its book value. Currently, the firm has excess cash of $ 20 million, other assets of $

4. XML has a market value equal to its book value.

4. XML has a market value equal to its book value. Currently, the firm has excess cash of $ 20 million, other assets of $ 70 million, and equity valued at $ 50 million. The firm has 3,000,000 shares of stock outstanding and net income of $ 25. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase

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