Chartered Financial Analyst Level 1

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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.

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.

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Last updated: April 22, 2026 at 14:02

Share repurchases

87.1%

Secondary stock issuances

6.5%

Equity-based compensation of employees

6.5%