Which One of the Following Will Increase Earnings Per Share

question 406

Multiple Choice

Which one of the following will increase earnings per share, all else held constant?

• A) A decrease in the number of shares outstanding.
• B) An increase in wages paid to employees.
• C) A decrease in sales of the firm.
• D) An increase in marginal tax rates.
• E) An increase in depreciation expense.

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Definitions:

Capital Stock

The total amount of physical and financial assets owned by a business or economy, crucial for production capacity.

Business Income

Revenue derived from the operations of a business, typically consisting of the gross receipts or sales minus the cost of goods sold and other deductions.

Labor Demand

The complete number of employees that businesses aim to recruit at a specific salary level, during a specified time frame.