ABC Corporation has consistently paid dividends for the past 10 years. Recently, the management announced a large share repurchase program, intending to repurchase 25% of shares outstanding over the next year. Analysts are assessing the impact of this decision on the company's financial ratios, specifically the return on equity (ROE) and earnings per share (EPS).
Assuming that net income remains unchanged, which of the following statements accurately describes how the share repurchase will affect ABC Corporation's financial ratios?