An on market share buyback always results in the amount paid for the shares exceeding the per share interest in owners' equity immediately before the share buyback.

Question

Quizplus · Accepted Answer

This statement is false. An on market share buyback does not always result in the amount paid for the shares exceeding the per share interest in owners' equity immediately before the share buyback. It depends on the market price at the time of the buyback and the book value of the shares being bought back. The market price may be lower than the book value, resulting in the amount paid for the shares being less than the per share interest in owners' equity.

An on Market Share Buyback Always Results in the Amount