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
You might also like to view...
From an investor's perspective, a firm's preferred stock is generally considered to be less risky than its common stock but more risky than its bonds. However, from a corporate issuer's standpoint, these risk relationships are reversed: Bonds are the most risky for the firm, preferred is next, and common is least risky.
Answer the following statement true (T) or false (F)
Some marketers contend that the only valid evaluation criterion of marketing that should be used is actual sales
Indicate whether the statement is true or false
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
Low-income countries are typically referred to as industrialized nations
Indicate whether the statement is true or false