A9. Which of the following is/are true following a share buy-back, compared with the situation after payment of a cash dividend of the same value? After a share buy- back: i) Earnings per share (EPS) is higher. ii) The company's working capital increases. iii) The number of shares in issue rises. iv) The company will adopt an aggressive working capital management strategy. a) i) only. b) i) and il) only. c) i) and ii) only. d) iv) only. A10. A company is intending to replace some existing machinery. Which one of the following is a relevant cash flow to be taken into account in appraising the investment decision? a) The residual value of the new machinery at the end of its life. b) The original cost of the old machinery. c) The book value of the old machinery. d) The depreciation charge on the new machinery