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


C

Business

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Answer the following statement true (T) or false (F)

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Indicate whether the statement is true or false

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According to the Fisher hypothesis, if the real interest rate is 2 percent and the inflation rate falls from 3 percent to 1 percent, then the nominal interest rate will  ____ percentage points and the real interest rate will decline by ____ percentage points.

A. decline by 0; 2 B. increase by 2; 2 C. increase by 0; 0 D. decline by 2; 0

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Indicate whether the statement is true or false

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