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When a company uses excess cash to buy back some of its outstanding common stock, which of the following ratios will be affected directly in

When a company uses excess cash to buy back some of its outstanding common stock, which of the following ratios will be affected directly in the manner described below?
A) earnings per share (EPS) will increase

B) there will not be any effect on the three ratios

C) return on equity (ROE) will decrease

D) the price earnings (PE) ratio will increase

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