Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 50. If Devon borrows f

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answerhappygod
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Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 50. If Devon borrows f

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Devon Ltd. common shares sell at $40 a share and their estimatedprice-to-earnings ratio (P/E) is 50. If Devon borrows funds torepurchase shares at its after-tax cost of debt of 2%, its EPS ismost likely to increase or decrease?
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