NO.PZ2023040402000004
问题如下：
Devon Ltd. common shares sell at US$40 a share, and their estimated price-to-earnings ratio (P/E) is 32. If Devon borrows funds to repurchase shares at its after-tax cost of debt of 5%, its EPS is most likely to:
选项：
A.
increase.
B.
decrease.
C.
remain the same.
解释：
If the P/E is 32, the earnings-to-price ratio (earnings yield or E/P) is 1/32 = 3.125%. When the cost of capital is greater than the earnings yield, earnings dilution will result from the buyback.
如果此处改为earning yield大于interest rate, 那调整后EPS是大于0吗？
