单选题 An analyst does research about earnings per share and gathers the following information about a company's planned share repurchase using borrowed funds:

Before-tax borrowing	11%
Marginal tax rate	35%
Price / Earnings ratio before share repurchase	13

All else being equal, compared to earnings per share before the repurchase, earnings per share after the repurchase will most likely:
A. decrease.
B. remain the same.
C. increase.

【正确答案】 C

【答案解析】[解析] 盈利收益率(earnings yield)=1/13=7.69%，大于税后债务成本(after-tax cost of debt)=11%×(1-35%)=7.15%，因此借钱回购股票将使得EPS上升。