A Firm Has a Market Value Equal to Its Book

A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $7,500. Equity is worth $8,000. The firm has 250 shares of stock outstanding and net income of $1,120. The firm is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?

A) $28
B) $30
C) $32
D) $34
E) $36