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AFP CTP Question # 117 Topic 12 Discussion

CTP Exam Topic 12 Question 117 Discussion:
Question #: 117
Topic #: 12

A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?


A.

Earnings per share will increase, and the number of shares outstanding will stay constant.


B.

Earnings per share will decrease, and the number of shares outstanding will increase.


C.

Earnings per share will increase, and the number of shares outstanding will decrease.


D.

Earnings per share will decrease, and the number of shares outstanding will stay constant.


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