In the Previous Year, Company XYZ Had 500,000 Shares Outstanding

Multiple Choice

In the previous year, company XYZ had 500,000 shares outstanding, and an EPS of $1.50 a share. This year, the company performed a buyback of 20% of the outstanding shares and by year end EPS had risen to $1.60 per share. The remaining shareholders should be

A) Positive because the company's earnings increased
B) Positive because shareholder earnings increased
C) Concerned because the company's earnings declined
D) Concerned because the number of shares decreased
E) Unconcerned because share price is not affected by company earnings