A company may reacquire its own shares for all of the following reasons except to
A)enhance market value.
B)reduce market value.
C)increase earnings per share.
D)have additional shares available for use.

Question

Quizplus · Accepted Answer

A company may reacquire its own shares to enhance market value, increase earnings per share, and have additional shares available for use. However, reducing market value is not a desirable outcome for a company, so it would not be a reason for reacquiring its own shares.

A Company May Reacquire Its Own Shares for All of the Following