Reference no: EM132960949

Problem 1. Stockholders' equity is accounted for at current fair value. True or False

Problem 2. Why might a company repurchase its own stock?

A) It believes that the market undervalues its shares

B) To offset dilutive effects of employee stock options granted

C) To recognize an economic gain when the treasury shares are later sold for a profit

D) To improve earnings per share by reducing the denominator

E) All of the above

Problem 3. Which best describes par value for a stock?

A) An arbitrary amount set by the company for each share of stock

B) The value of the stock if it is not sold for a premium or discount

C) The current market value of the stock

D) The value at which stock shares were originally issued

E) None of the above