An all equity company has a book value equal to its market value, with $43k in cash and $67k in other assets. The firm has 7.5k shares outstanding and net income of $2k.
a. If the firm uses its cash to complete a stock repurchase, what with the new EPS be?
b. If the firm used its cash to pay a $5.73 dividend, what would the new stock price be?
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