C$.12$ November.

Aiken Instruments $($AIK$)$ has recently declared a regular quarterly dividend of $$0\mathrm{.}50,$

payable on $12$ November, with an ex$-$dividend date of $28$ October. Which date below

would be the holder$-$of$-$record date assuming all the days listed are business days and that

trades settle three business days after the trade date?

A$.27$ October.

B$.30$ October.

C$.11$ November.

A company has $1$ million shares outstanding and earnings are $2$ million. The company

decides to use $10$ million in idle cash to repurchase shares in the open market. The

company's shares are trading at $50$ per share. If the company uses the entire $10$ million

of idle cash to repurchase shares at the market price, the company's earnings per share

will be closest to:

A$.2\mathrm{.}00.$

B$.2\mathrm{.}30.$

C$.2\mathrm{.}50.$

Devon Ltd$.$ common shares sell at $$40$ a share and their estimated price$-$to$-$earnings ratio

$(\frac{P}{E})$ 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.

A company can borrow funds at an after$-$tax cost of $4\mathrm{.}5\%.$ The company's stock price is

$$40$ per share, earnings per share is $$2\mathrm{.}00,$ and the company has $15$ million shares

outstanding. If the company borrows just enough to repurchase $2$ million shares of stock

at the prevailing market price, that company's earnings per share is most likely to:

A$.$ increase.

B$.$ decrease.

C$.$ remain the same.