Asked by
Stephanie Gonzalez
on Oct 27, 2024
Verified
Net income increases when treasury stock is resold for an amount in excess of the amount paid when the common stock was repurchased.
Treasury Stock
Shares that were once a part of the outstanding shares and have been repurchased by the company.
Resold
The action of selling an item that has previously been sold or transferring ownership from one party to another.
- Comprehend the effects that dividends and treasury stock operations have on the financial reports of a corporation.
- Gain an understanding of the earnings per share concept and the procedure for its calculation.
Verified Answer
CF
Learning Objectives
- Comprehend the effects that dividends and treasury stock operations have on the financial reports of a corporation.
- Gain an understanding of the earnings per share concept and the procedure for its calculation.