Which of the following is most likely to increase EPS?
A) a 6 for 5 stock split
B) a 20% stock dividend
C) The company repurchases 20% of outstanding shares.
D) a 20% cash dividend

Question

Quizplus · Accepted Answer

When the company repurchases 20% of outstanding shares, the remaining shares will have a higher portion of earnings, leading to an increase in EPS. A stock split or dividend does not change the total earnings of the company, and a cash dividend reduces cash reserves without affecting the number of shares outstanding.

Which of the Following Is Most Likely to Increase EPS