NO.PZ2018101501000121
问题如下：
Company M has 10 million shares of outstanding stock. Currently, the earning per share is $2.50. If Company M repurchases $50 million at the current share price of $25 per share by borrowing the funds at an after-tax cost of 8%, what`s the change in earning per share after the repurchase?
选项：
A.
It would remain the same.
B.
It would decrease.
C.
It would increase.
解释：
C is correct.
考点：Share Repurchases
解析：M公司earnings yield = EPS/Share price = 2.5/25 = 10%，大于8%，因此回购完的EPS将会上升。
老师，借着这题问一下，这两个指标的区别？是不是前者分母是Book Value，后者分母相当于是Fair Value？这么理解可以吗？还有其他的区别吗？
