Question: firm has a market value equal to its book value. Currently, the firm has excess cash of $200 and other assets of $7,000. Equity is

firm has a market value equal to its book value. Currently, the firm has excess cash of $200 and other assets of $7,000. Equity is worth $7,200. The firm has 900 shares of stock outstanding and net income of $825. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

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