Question

Co. has excess funds and is debating between a share buyback and paying a dividend to...

Co. has excess funds and is debating between a share buyback and paying a dividend to its shareholders.

a.

EPS will increase if Co. buys Treasury Stock

b.

EPS will decrease if Co. buys Treasury Stock

c.

EPS will decrease if Co. pays a dividend

d.

EPS will remain unchanged for either a dividend or a buyback

e.

EPS will decrease for either a dividend or a buyback

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