AFP
CTP · Question #38
(Topic 1) A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?
The correct answer is C. Earnings per share will increase, and the number of shares outstanding will decrease.. See the full explanation below for the reasoning.
Question
- (Topic 1)
A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?
Options
- AEarnings per share will increase, and the number of shares outstanding will stay
- BEarnings per share will decrease, and the number of shares outstanding will increase.
- CEarnings per share will increase, and the number of shares outstanding will decrease.
- DEarnings per share will decrease, and the number of shares outstanding will stay
How the community answered
(58 responses)- A3% (2)
- B17% (10)
- C72% (42)
- D7% (4)
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