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If Expert Inc., repurchased 50 percent of its outstanding common stock from the open (secondary) market, the result would be:

 

 

1. a decline in EPS.

 

2. an increase in cash.

 

3. a decrease in total assets.

 

4. an increase in the number of stockholders.

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/12
Upvote (2) Views (5) Followers (5) Answers (4) Report Question
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option3 is the right answer.

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is3. Decrease in total assets. The acquisition of the treasury shares will reduce the stock outstanding thereby increasing EPS. This will decrease cash, hence the answer3.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

3. a decrease in total assets.-----------

Ahmer Zamir
by Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is3) Decrease in Total Assets

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