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

Question

Quizplus · Accepted Answer

Purchasing treasury stock can increase basic earnings per share because it reduces the number of outstanding shares, increasing the earnings per share calculation. Paying more than carrying value to retire outstanding bonds or issuing cumulative preferred stock do not directly impact basic earnings per share.

Which of the Following Results in Increasing Basic Earnings Per