Which of the following results in increasing basic earnings per share?
A) Paying more than book (carrying) value to retire outstanding bonds.
B) Issuing cumulative preferred stock.
C) Purchasing treasury stock.
D) All of these answer choices increase basic earnings per share.

Question

Quizplus · Accepted Answer

Purchasing treasury stock reduces the number of outstanding shares, which increases basic earnings per share. Paying more than book value to retire outstanding bonds and issuing cumulative preferred stock do not directly increase basic earnings per share.

Which of the Following Results in Increasing Basic Earnings Per