cfa民间高手赐教 increase, equity, price, company

Mechanic

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！

therecruit

is the answer c?

yodacaia

right,can you give the detail analysis ?