Choose the reason for which a corporation would not do a treasury stock purchase.

Question

Quizplus · Accepted Answer

A treasury stock purchase reduces the number of shares outstanding, which can increase earnings per share and potentially the stock price, and can be used as a strategy to repel a takeover attempt. However, it does not increase cash dividends per share; instead, it might reduce the total amount of cash available for dividends since the company is using cash to buy back shares.

Choose the Reason for Which a Corporation Would Not Do