Explanation:
Explanation:
Option A (Correct): Share repurchases reduce the number of outstanding shares. A decrease in the number of shares outstanding, all else being equal, will increase the EPS.
Option B (Incorrect): Secondary stock issuances increase the number of outstanding shares. An increase in the number of shares outstanding, all else being equal, will decrease the EPS.
Option C (Incorrect): Equity-based compensation increases the number of outstanding shares. An increase in the number of shares outstanding, all else being equal, will decrease the EPS.
All else being equal, which of the following actions is most likely to increase a company's forecasted earnings per share (EPS)?
A
Share repurchases
B
Secondary stock issuances
C
Equity-based compensation of employees
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