Which of the following is not a reason why a company would purchase its own stock?
A. The company's management may have concluded that the company's stock is undervalued at the prevailing market price.
B. The company wants to increase its earnings per share.
C. The company needs shares in order to meet employee stock option plans.
D. The company wants to manipulate its net income.
Answer: D
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Robert steals a truckload of plasma televisions that belong to Karson Electronics Store. He then resells it to Stu-Mart, which is unaware of the stolen nature of the goods. Karson Electronics Store then traces the plasma televisions to Stu-Mart
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