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a b c or d ip 500-510] When a corporation repurchases its own stock, the repurchased shares may be retired or may treated as 'treasury

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a b c or d

ip 500-510] When a corporation repurchases its own stock, the repurchased shares may be retired" or may treated as 'treasury stock Most of the following are good and true explanations of why a corporation might buy back its own stock. Which is NOT a good explanation for why corporations buy back their own stock? O To have shares available to use to acquire another corporation O To increase the number of sharcholders 0 In attempt to avoid a hostile take-over To have shares available for employee compensation, such as stock-option plans Question 2 1 pts ip 492-501] Retained earnings were discussed in the course introductory material and in Chapter 3, and reappear in Chapter 11] Most of the following statements regarding retained earnings are true. Which statement is FALSE and misleading with regard to retained earnings? O The payment of cash dividends increases a farm's retained eanings O Retained earnings consists of the firm's cumulative net income less any dividends declared since the firm's inception If the Board declares a cash dividend to shareholders, the dividend reduces retained earnings. O The Statement of Retained Earnings serves as a "bridge, between the income statemert and the Balance Sheet net income (from the income statement) becomes part of retained earnings in the equity section of the balance sheet o you want to clean it up for a fresh, ke-new esperience? And by the way, welcome backt

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