A company has 1 million shares outstanding and earnings are $3 million. The company decides to use $30 million in idle c

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A company has 1 million shares outstanding and earnings are $3 million. The company decides to use $30 million in idle c

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A company has 1 million shares outstanding and earnings are $3million. The company decides to use $30 million in idle cash torepurchase shares in the open market. The company’s shares aretrading at $40 per share. If the company uses the entire $30million of idle cash to repurchase shares at the market price, thecompany’s earnings per share will be closest to:
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