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How does the purchase of treasury stock affect the

Question: 1. How does the purchase of treasury stock affect the purchaser's assets and total equity?

2. Why do laws place limits on treasury stock purchases?

3. How are EPS results computed for a corporation with a simple capital structure?

4. What is a stock option?

5. How is book value per share computed for a corporation with no preferred stock? What is the main limitation of using book value per share to value a corporation?

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