Impact of Share Buybacks on EPS

ABC Corporation has decided to repurchase shares worth $5 million from the open market. Prior to the repurchase, ABC's earnings per share (EPS) was $4.00, and there were 1 million shares outstanding. After the shares are repurchased, how would this repurchase likely affect the company's earnings per share (EPS) in the context of future earnings projections?

Assume that the total earnings of the company remain unchanged post-repurchase, and no new shares will be issued. Consider the implications of share buybacks on key financial ratios such as return on equity (ROE) and the price-to-earnings (P/E) ratio as well.