[单选题]

A firm with earnings per share of $2 decides to repurchase a portion of its shares at their market price of $25. The firm's after-tax cost of debt is 6% and the firm earns a 2% after-tax yield on its excess cash. When the firm repurchases shares, its earnings per share will:

A.Increase if the firm funds the repurchase with debt or uses excess cash to repurchase the shares.

B.Decrease if the firm funds the repurchase with debt or uses excess cash to repurchase the shares.

C.Decrease if the firm funds the repurchase with debt,but increase if the firm uses excess cash to repurchase the shares.

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