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Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying

  1. Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying the same)?

  1. Earnings per share will increase
  2. Treasury stock will show as a contra-stockholders equity account on the balance sheet
  3. The company will show a gain from purchase of treasury stock on the income statement
  4. Fewer shares of common stock are outstanding.

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