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A company can create anticipated earnings per share (EPS) growth through leverage and stock repurchases. What...

A company can create anticipated earnings per share (EPS) growth through leverage and stock repurchases. What is another way a firm can have anticipated earnings per share(EPS) growth without adding value.

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Answer #1

EPS = Earnings / (wieghted average of Shares outstanding)

This to increase EPS, shares outstanding can be decreased:

Stock Splits, Convertibles (converting shares to debt)

Earnings can be increased (without adding value) by Leases (operating vs Finacial Leases, and converting 1 to the other.

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