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When a Company Uses Excess Cash to Buy Back Some

Question 120

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When a company uses excess cash to buy back some of its outstanding common shares,which of the following ratios will be affected directly in the manner described below?


A) The return on equity (ROE) will decrease.
B) Earnings per share (EPS) will increase.
C) The inventory turnover ratios will increase.
D) Sharpe's Ratio.

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