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Exam (elaborations)

BUS 401: Principles of Finance Costco week 2 with ALL the CORRECT answers

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When a firm buys back outstanding shares of common stock, which of these measures increase? ANSWER  THE CORRECT ANSWER EPS and BVPS When a firm buys back outstanding shares of common stock from shareholders, the number of outstanding shares is reduced. Therefore, the per-share measures, earnings per share (EPS) and book value per share (BVPS), increase because the total number of shares is the denominator of each measure

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