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4. (Dividends and share repurchases: Basics) Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 32. If Devon
4. (Dividends and share repurchases: Basics) Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 32. If Devon borrows funds to repurchase shares at its after-tax cost of debt of 5%, its EPS is most likely to: (a) increase (b) decrease (c) remain the same
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