A company may repurchase its own shares for all of the following reasons, except to reduce the number of shares issued and thereby increase earnings per share and return on equity. to have additional shares available for use in the acquisition of other companies. to attempt to influence the market price of the shares. to reduce the number of shares issued in order to meet debt to equity bank covenant requirements.
A company may repurchase its own shares for all of the following reasons, except to reduce the number of shares issued and thereby increase earnings per share and return on equity. to have additional shares available for use in the acquisition of other companies. to attempt to influence the market price of the shares. to reduce the number of shares issued in order to meet debt to equity bank covenant requirements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![* Your answer is incorrect.
A company may repurchase its own shares for all of the following reasons, except
O to reduce the number of shares issued and thereby increase earnings per share and return on equity.
to have additional shares available for use in the acquisition of other companies.
O to attempt to influence the market price of the shares.
O to reduce the number of shares issued in order to meet debt to equity bank covenant requirements.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57daeeea-900c-4f62-b7f9-1f7812a025f7%2F7cda406d-750d-4c34-b90b-9ad70331e10b%2F48os15b_processed.png&w=3840&q=75)
Transcribed Image Text:* Your answer is incorrect.
A company may repurchase its own shares for all of the following reasons, except
O to reduce the number of shares issued and thereby increase earnings per share and return on equity.
to have additional shares available for use in the acquisition of other companies.
O to attempt to influence the market price of the shares.
O to reduce the number of shares issued in order to meet debt to equity bank covenant requirements.
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