4. If a company's after-tax borrowing rate is greater than the company's earning yield when the company repurchases stoc

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answerhappygod
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4. If a company's after-tax borrowing rate is greater than the company's earning yield when the company repurchases stoc

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4. If a company's after-tax borrowing rate is greater than the
company's earning
yield when the company repurchases stock with borrowed money,
going
forward, the earnings per share is most likely to:
A. increase.
B. decrease.
C. remain unchanged.
Please explain.
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