What Would Be the Effect on Book Value Per Share

question 127

Multiple Choice

What would be the effect on book value per share and earnings per share if the corporation purchased its own shares in the open market at a price greater than book value per share?

• A) Increase both book value per share and earnings per share
• B) Decrease both book value per share and earnings per share
• C) Decrease book value per share and increase earnings per share
• D) No effect on book value per share but increase earnings per share

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