As of November 29,it appears that Notel will report earnings per share (EPS)of $1.15 for the quarter ended November 30.Which of the following events would cause this EPS number to decrease,assuming the event occurs the morning of November 30?
A)The company pays a supplier for inventory bought on account.
B)The company declares,but does not pay,a cash dividend.
C)The company purchases 10 shares of common stock in another company.
D)The company reissues the treasury stock it holds.

Question

Quizplus · Accepted Answer

EPS = (Net income − Preferred dividends)÷ Average number of common shares outstanding.
Reissuing treasury stock will cause the average common shares outstanding to increase and,as a result,EPS will decrease.

As of November 29,it Appears That Notel Will Report Earnings