问题如下：
A company can borrow funds at an after-tax cost of 4.5 percent. The company’s stock price is $40 per share, earnings per share is $2.00, and the company has 15 million shares outstanding. If the company borrows just enough to repurchase 2 million shares of stock at the prevailing market price, that company’s earnings per share is most likely to:
选项：
A.increase.
B.decrease.
C.remain the same.
解释：
A is correct.
The company’s earnings yield (E/P) is $2/$40 = 0.05. When the earnings yield is greater than the after-tax cost of borrowed funds, EPS will increase if shares are repurchased using borrowed funds.
老师请问，这题不是直接算E/P=2/(40-2)=5.26%大于after tax cost就可判断为increase吗
