A Stock Repurchase Will

question 17

Multiple Choice

A stock repurchase will:

• A)increase the number of shares outstanding.
• B)decrease the earnings per share.
• C)decrease the market price per share.
• D)increase the market value per share.
• E)decrease the PE ratio.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Accounts Payable Balance

The total amount of money a company owes to suppliers or creditors for items or services purchased on credit.

Purchase Price

The amount of money paid to buy a good, service, or financial asset.