Accounting treatment of buy-backs

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Reference no: EM13920374

Questions are around the topic of Treasury Stock/Stock Buybac and the accounting treatment of buybacks as well as the financial advantages and disadvantages. Please assist in answering all questions. I greatly appreciate the assistance, thank you

1).Define treasury stock/stock buyback.

2). Explain accounting treatment of buy-backs, including purchase, subsequent sale and retirement of stock.

3). Explain the impact buyback has on corporate cash, retained earnings, EPS and the stockholder and reasons corporations buy their own stock.

4). Discuss the buyback's implication on corporate financial strength and outlook.

5). Discuss alternatives that could improve financial strength.

6). Proponents claim that buybacks are a means of distributing cash to stockholders. Explain and critique this position.

Reference no: EM13920374

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