BHP Billiton (GBR) is the world€™s largest diversified natural resources company. The company extracts and processes minerals, oil, and gas from its production operations located primarily in Australia, the Americas, and southern Africa. BHP Billiton sells its products globally, with sales and marketing taking place through its principal hubs of The Hague and Singapore. Presented below are some basic facts for BHP Billiton.

Instructions
(a) What are some of the reasons that management purchases its own shares?
(b) Explain how earnings per share might be affected by treasury share transactions.
(c) Calculate the ratio of debt to total assets for 2008 and 2009, and discuss the implications of thechange.

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Billiton (000) 2009 2008 Sales Net earnings Total assets Total liabilities Share capital Reserves Retained earnings Treasury shares Number of shares outstanding $50,211 6,338 78,770 38,059 2,343 1,305 36,831 525 S59,473 15,962 76,008 36,965 2,343 750 36,831 514 (millions) 5,565 5,590