All Else Equal,when Companies Make Stock Repurchases

question 32

Multiple Choice

All else equal,when companies make stock repurchases:

• A)EPS falls and ROE rises.
• B)EPS rises and ROE stays the same.
• C)EPS rises and ROE falls.
• D)EPS and ROE both rise.

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Definitions:

Compensating Differentials

Wage differentials that arise from the need to compensate workers for non-monetary aspects of a job, such as difficult working conditions or undesirable locations.

Midnight Shift

A work schedule that typically runs through the night hours, often starting at or around midnight and lasting until morning.

Efficiency Wages

A theory in labor economics that suggests higher wages can increase worker productivity and efficiency, often leading to lower turnover and improved quality of work.

Prevailing Wage

The average wage paid to similarly employed workers in a specific region, occupation, or industry.