Reasons That a Company Would Purchase Treasury Stock Include All

question 144

Multiple Choice

Reasons that a company would purchase treasury stock include all of the following EXCEPT:

• A)management wants to avoid a takeover by an outside party.
• B)it needs the stock for distribution to employees under stock purchase plans.
• C)it wants to increase net assets by buying its stock low and reselling it at a higher price.
• D)management wants to decrease earnings per share of common stock.

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