A Company Purchased 1,000 Shares of Treasury Stock for $38,000

question 43

Multiple Choice

A company purchased 1,000 shares of treasury stock for $38,000 cash. The treasury stock was initially issued for $24,000 and had a $9,000 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?

• A) Net income is unchanged.
• B) Earnings per share increases.
• C)Total assets remain the same.
• D)Stockholders' equity decreases.

Recognize the effects of timing, such as the small-firm effect in specific months.

Grasp the concept of market efficiency and its forms (weak, semistrong, strong).

Identify the methods and limitations of technical analysis.

Comprehend the implications of random price movements on market predictions and patterns.

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