Generally as long as earnings remain constant, the repurchase of shares reduces the number of outstanding shares, raising the earnings per share and therefore the market price per share.

Question

Quizplus · Accepted Answer

Repurchasing shares reduces the number of outstanding shares, which in turn increases the earnings per share and the market price per share, as long as earnings remain constant. Therefore, the statement is true.

Generally as Long as Earnings Remain Constant, the Repurchase of Shares