Why might a company repurchase its own stock?A) It believes that the market undervalues its sharesB) To offset dilutive effects of employee stock options grantedC) To recognize an economic gain when the treasury shares are later sold for a profitD) To improve earnings per share by reducing the denominatorE) All of the aboveis it just A and B or is it all of the above

Introduction: Common stock is owners' capital contributed in the business. Holders of the common…

Answered: Why might a company repurchase its own…

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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Why might a company repurchase its own stock?

A) It believes that the market undervalues its shares
B) To offset dilutive effects of employee stock options granted
C) To recognize an economic gain when the treasury shares are later sold for a profit
D) To improve earnings per share by reducing the denominator
E) All of the above

is it just A and B or is it all of the above

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