When a Company Acquires Treasury Stock, What Effect Does This

question 19

Multiple Choice

When a company acquires treasury stock, what effect does this transaction have on earnings per share and legal capital, respectively?

• A) decrease, increase
• B) increase, decrease
• C) decrease, decrease
• D) increase, none

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Definitions:

Pivot Joint

A type of synovial joint that allows rotation around a single axis, as seen in the neck between the first and second cervical vertebrae.

Intercarpal

Pertaining to the joints and movements between the carpal bones of the wrist.

Intertarsal

Relating to the joints between the tarsal bones in the foot, contributing to foot movement and flexibility.

ACL

The anterior cruciate ligament, a key ligament that stabilizes the knee joint.