Multiple Choice
When a company uses excess cash to buy back some of its outstanding common stock,which of the following ratios will be affected directly in the manner described below?
A) Return on equity (ROE) will decrease.
B) Earnings per share (EPS) will increase.
C) The Price Earnings (PE) ratio will increase.
D) The receivables turnover ratio will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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