Which of the following is NOT true about treasury stock? It can be reissued under stock...
Which of the following is NOT true about treasury stock?
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It can be reissued under stock option and other employee benefit plans. |
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It increases the net worth of the company. |
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It lowers the value of the company. |
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It is a firm's own shares repurchased in the market by the firm. |
Homework Answers
The correct answer is:
It increases the net worth of the company.
Treasury Stock are the shares purchased back by the company. These can be re-issued.
These shares are not considered in calculating equity, EPS or net worth.
Hence, treasury stock does not increase the net worth of the company.
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Which of the following is NOT true about treasury stock?
It can be reissued under stock...
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