An Edmonton Firm Has a Market Value Equal to Its

An Edmonton firm has a market value equal to its book value. Currently, the firm has excess cash of $1,040 and other assets of $6,950. Equity is worth $4,800. The firm has 240 shares of stock outstanding and net income of $410. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

A) $2.08
B) $2.13
C) $2.18
D) $2.21
E) $2.42