Earnings per share will tend to increase with the purchase of treasury stock.

Name: Earnings per share will tend to increase with the purchase of treasury stock.
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When a company buys back its own shares, known as treasury stock, the number of outstanding shares decreases. Since earnings per share (EPS) is calculated by dividing the company's profit by the number of outstanding shares, a reduction in the number of shares increases the EPS, assuming net income remains constant.

Earnings Per Share Will Tend to Increase with the Purchase