As compared to a cash dividend a share repurchase will do


As compared to a cash dividend, a share repurchase will do which of the following?

a. Increase both earnings per share and the PE ratio
b. Not affect either the earnings per share nor the PE ratio
c. Not affect the earnings per share but will decrease the PE ratio
d. Increase the earnings per share and decrease the PE ratio
e. Increase the earnings per share but not affect the PE ratio

 

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Finance Basics: As compared to a cash dividend a share repurchase will do
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