Reducing the Number of Outstanding Shares Will Always Increase Financial

question 46

True/False

Reducing the number of outstanding shares will always increase financial leverage since earnings per share will be higher, all else stays the same.

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Definitions:

Well-Being

A state of comfort, health, or happiness that individuals or groups experience.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, as defined by the World Health Organization.

Peter Singer

A philosopher known for his work in bioethics and effective altruism, emphasizing utilitarian ethical theories.

Utilitarian Case

An argument based on the principle that the best action is the one that maximizes overall happiness or minimizes overall suffering.