All Other Things Equal, What Is the Effect on Earnings

question 14

Multiple Choice

All other things equal, what is the effect on earnings per share when a corporation acquires shares of its own stock on the open market?

• A) Decrease.
• B) No effect if the shares are held as treasury shares.
• C) Increase only if the shares are considered to be retired.
• D) Increase.

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Definitions:

Dialectical Behavior Therapy

A cognitive-behavioral therapy designed to help people change patterns of behavior that are not helpful, such as self-harm, suicidal ideation, and substance abuse, through the acquisition of skills in mindfulness, distress tolerance, emotion regulation, and interpersonal effectiveness.

Dialect

A particular form of a language which is peculiar to a specific region or social group.

Acceptance

The act of recognizing and welcoming facts or conditions as they are without attempting to change them.

Change

This is the act or process of becoming different, often involving a shift in situations, conditions, or states.