Final answer:
A stock repurchase can result in a decrease in the number of shares outstanding, an increase in the price per share (option ii) , and an increase in earnings per share (option iii). The P/E ratio's reaction to a repurchase is not deterministic and can vary based on market perception.
Step-by-step explanation:
The immediate consequences of a stock repurchase include a decrease in the number of shares outstanding (i. incorrect), often an increase in the price per share of the repurchasing firm due to a reduced supply of shares in the market (ii. correct), and an increase in earnings per share since there are fewer shares among which the earnings are divided (iii. correct). The impact on the P/E ratio is not fixed and will depend on how the market perceives the repurchase; it does not necessarily remain equal to that resulting from a comparable cash dividend (iv. incorrect).
When a firm opts to repurchase its stock, it is essentially investing in itself, often signaling confidence in its future prospects. This can have positive effects on investor perception, potentially leading to a price increase. Moreover, with a reduction in the total number of outstanding shares, the same amount of earnings is spread over fewer shares, thus increasing the earnings per share (EPS). However, the impact on the P/E ratio is subjective and depends on the market's reaction to the repurchase.