a firm has an after-tax cost of debt of 5%, a cost of equity of 9%,and earns 1% on its surplus cash. A share repurchase will increase the company's EPS when the repurchase is funded with :
A. debt,and the earnings yield is less 5%
B. debt, and the campany's PEratios is greater than 5%
C. surplus cash ,and the repurchase price is greater than the campany's BVPS.
which and why？
thank you！ |
发表于 2012-6-7 12:09
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