Answered: Companies buy their own shares of stock…

Companies buy their own shares of stock for employee stock option plans, to support the stock price, to increase earnings per share, and to make a hostile takeover more difficult. Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Companies buy their own shares of stock for employee stock option plans, to support the stock price, to increase earnings per share, and to make a hostile takeover more difficult.

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