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

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Purchasing its own shares at a price greater than book value per share decreases the book value per share because the company is using its assets to buy back shares at a higher price, reducing equity on a per-share basis. Earnings per share (EPS) increase because there are fewer shares outstanding, which means earnings are distributed among fewer shares, increasing the EPS.

What Would Be the Effect on Book Value Per Share