Stock repurchase A company repurchase of common stock outstanding has which of the following effects on the balance sheet?
a. an increase in shares outstanding
b. an increase in stockholder equity
c. a decrease in paid-in capital
d. a positive investment cash flow
Use the following raw data to answer the next four questions:
|
Net income |
$8 |
|
Depreciation/amortization |
$2 |
|
Repurchase of outstanding common stock |
$5 |
|
Issuance of new debt |
$9 |
|
Sale of property |
$6 |
|
Purchase of equipment |
$7 |
|
Dividend payments |
$2 |