All Other Things Being Equal,when a Company Repurchases Its Common

question 57

Multiple Choice

All other things being equal,when a company repurchases its common stock:

• A)EPS decreases and ROE increases.
• B)EPS increases and ROE stays the same.
• C)EPS increases and ROE decreases.
• D)EPS and ROE both increase.

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Definitions:

Operant Conditioning

A type of learning in which the consequences of behavior are manipulated so as to increase or decrease the frequency of an existing response or to shape an entirely new response.

Dishonest Coworker

A colleague who lacks integrity and honesty, possibly engaging in deception or fraud in the workplace.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

World-Will-End

A concept often associated with apocalyptic beliefs regarding the ultimate fate of the world.