Which of the following is a reason that a company would repurchase its own shares of stock in the market?
A) To reduce cash and the number of shares outstanding
B) To increase outstanding equity shares
C) To have shares available to offer a merger target
D) Both A and B

Question

Quizplus · Accepted Answer

Repurchasing shares reduces the number of shares outstanding and uses up cash, which can increase earnings per share and potentially boost the stock price.

Which of the Following Is a Reason That a Company