单选题
编号：2692251
1. A firm with earnings per share of $2 decides to repurchase a portion of its shares at their market price of $25. The firm's after-tax cost of debt is 6% and the firm earns a 2% after-tax yield on its excess cash. When the firm repurchases shares, its earnings per share will:
- A.Increase if the firm funds the repurchase with debt or uses excess cash to repurchase the shares.
- B.Decrease if the firm funds the repurchase with debt or uses excess cash to repurchase the shares.
- C.Decrease if the firm funds the repurchase with debt,but increase if the firm uses excess cash to repurchase the shares.