Aircraft Canada expects sales and net income to remain constant next year. If Aircraft Canada wishes to increase its earnings per share figures, then Aircraft Canada could:

Question

Quizplus · Accepted Answer

Repurchasing outstanding shares of common stock would reduce the number of shares outstanding, which, assuming net income remains constant, would increase the earnings per share (EPS) figure. This is because EPS is calculated by dividing the net income by the number of outstanding shares. Reducing the denominator (outstanding shares) while keeping the numerator (net income) constant increases the value of the quotient (EPS).

Aircraft Canada Expects Sales and Net Income to Remain Constant