If the company repurchases 1 million shares at the prevailing market price, the resulting book value…

An analyst gathered the following information about a company:

Number of shares outstanding

10 million

Earnings per share

$2.00

P/E

20

Book value per share

$30

If the company repurchases 1 million shares at the prevailing market price, the resulting book value per share will be closest to:

A. $26.

B. $27.

C. $29.

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