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 $600 and other assets of $5,400. Equity is worth $6,000. The firm has 500 shares of stock outstanding and net income of $900. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

A) $1.20
B) $1.50
C) $1.80
D) $2.00
E) $2.40