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When a company finances share repurchases with cash:?

A. assets and shareholders’ equity decrease and leverage increases.

B. assets and shareholders’ equity decrease and leverage remains -unchanged.

C. leverage increases, shareholders’ equity decreases and assets remain unchanged.

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/01
Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

option A=====================

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is B. assets and shareholders' equity decrease and leverage remains unchanged.

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

A-------------------------------------------------------

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