Describe at Least Three Reasons Why a Corporation Would Want

question 12

Essay

Describe at least three reasons why a corporation would want to buy back its own stock.

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Definitions:

Price-Earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.

Market Price

The existing rate at which a service or commodity can be acquired or disposed of.

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Corporate Income Statement

is a financial document that outlines a corporation’s revenues, expenses, and profits or losses over a specific period.