calculate the impact on eps if takemiya uses the surplus cash to repurchase shares a 586355

Takemiya Industries, a Japanese company, has been accumulating cash in recent years with a plan of expanding in emerging Asian markets. The global recession has persuaded Takemiya’s management and directors that such expansion is no longer practical, and they are considering a share repurchase using surplus cash. Takemiya has 10 million shares outstanding and its net income is ¥100 million. Takemiya’s share price is ¥120. Cash not needed for operations totals ¥240 million and is invested in Japanese government short term securities that earn virtually zero interest. For a share repurchase program of the contemplated size, Takemiya’s investment bankers think the stock could be bought in the open market at a ¥20 premium to the current market price, or ¥140 a share. Calculate the impact on EPS if Takemiya uses the surplus cash to repurchase shares at ¥140 per share.