When a company buys additional shares of treasury stock during a year when it does not issue any additional shares of common stock,its earnings per share will most likely increase.

Question

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When a company buys back its own shares of stock, the total number of outstanding shares decreases, which in turn increases the earnings per share. Therefore, if a company buys additional shares of treasury stock during a year when it does not issue any additional shares of common stock, its earnings per share will most likely increase.

When a Company Buys Additional Shares of Treasury Stock During