Stock repurchases reduce
1) total equity
2) total assets
3) corporate taxes
4) total liabilities
A)1 and 2
B)1 and 3
C)2 and 3
D)3 and 4

Question

Stock repurchases reduce​
1) total equity
2) total assets
3) corporate taxes
4) total liabilities
A)​1 and 2
B)​1 and 3
C)​2 and 3
D)​3 and 4

Quizplus · Accepted Answer

Stock repurchases reduce the total equity of the company as shares are bought back from shareholders, leading to a decrease in outstanding shares. This also results in a decrease in total assets, as cash is used to buy the shares. Corporate taxes and total liabilities are not necessarily affected by stock repurchases.

Stock Repurchases Reduce​ 1) Total Equity

Stock Repurchases Reduce 1) Total Equity