What is the effect of share repurchase on shares outstanding

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Reference no: EM132057358

1. The ___________ approach in an M&A setting attempts to determine the enterprise value or value of the company, by computing the present value of cash ?ows over the life of the company.

A) net present value

B) synergy

C) payback

D) internal rate of return

E) discounted cash flow

2. What is the effect of a share repurchase on shares outstanding?

A) Reduction in earnings per share

B) Increase in the shares outstanding

C) Reduction in the shares outstanding

D) No impact on earnings per share

E) No impact on shares outstanding

3. Reverse stock splits will __________

Increase the total wealth of stockholders.

Reduce retained earnings.

Increase the number of shares to stockholders.

Decrease the number of shares to stockholders.

4. When we perform a capital budgeting analysis for a new project, if the salvage value is different from the book value of the asset, then there is a tax effect.

a. true

b. false

Reference no: EM132057358

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