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

Question

Quizplus · Accepted Answer

The repurchase of outstanding shares reduces the number of shares outstanding, which in turn increases the EPS calculation. A share split or share dividend simply increases the number of shares outstanding, which decreases EPS. A cash dividend does not affect the number of shares outstanding or EPS.

Which of the Following Is Most Likely to Increase EPS