Let's analyze each option step by step: 1. **Allocate some of the company's earnings to purchasers of the company's shares of common stock, ideally most every year.** - This is not a standard practice. Earnings are distributed as dividends to shareholders, not specifically to purchasers. 2. **Achieve an A+ credit rating--the resulting lower interest rates on borrowings help drive increases in EPS.** - While a better credit rating lowers borrowing costs, the impact on EPS is indirect and not guaranteed or dramatic. 3. **Allocate significant cash flows from operations to repurchasing shares of common stock, ideally most every year.** - **This is correct.** Share repurchases reduce the number of shares outstanding, which increases EPS (Earnings Per Share), assuming net income remains constant or rises. 4. **Offer more camera/drone models to buyers than rivals; 7 models is ideal.** - This is related to product strategy, not directly to EPS manipulation. 5. **Allocate significant cash from new loan issues to repurchasing shares of common stock, often every year or so.** - While this can boost EPS, it increases debt and financial risk. It is less sustainable compared to using cash flows from operations. --- ### **Final Answer:** **Allocate significant cash flows from operations to repurchasing shares of common stock, ideally most every year.** This is the most reliable way for management to bolster EPS, as it directly reduces the denominator (shares outstanding) in the EPS calculation. **Correct choice:** **Allocate significant cash flows from operations to repurchasing shares of common stock, ideally most every year.**