See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 2.1 million shares each year from 20132013 to 20162016. What would be its earnings per share in 2016? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) (Select the best choice below.)

A. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2016 shares outstanding equals 54.7 million plus 4 times 2.1 million equals 52.6 million=54.7 million+42.1 million=52.6 million, EPS equals $ 11.4 million divided by 52.6 million equals $ 0.22EPS=$11.4 million/52.6 million=$0.22.

B. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 20162016 shares outstanding equals 54.7 million plus 4 times 2.1 million equals 52.6 million=54.7 million+42.1 million=52.6 million, EPS equals $ 22.1 million divided by 52.6 million equals $ 0.42EPS=$22.1 million/52.6 million=$0.42.

C. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction in shares outstanding. 20162016 shares outstanding equals 54.7 million minus 4 times 2.1 million equals 46.3 million=54.7 million42.1 million=46.3 million, EPS equals $ 11.4 million divided by 46.3 million equals $ 0.25EPS=$11.4 million/46.3 million=$0.25.

D. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction in shares outstanding. 20162016 shares outstanding equals 54.7 million minus 4 times 2.1 million equals 46.3 million=54.7 million42.1 million=46.3 million, EPS equals $ 22.1 million divided by 46.3 million equals $ 0.48EPS=$22.1 million/46.3 million=$0.48.