answersLogoWhite

0

If a firm repurchases its own stock, then net income decreases because the company spent money to reacquire the stock.

However, while net income decreases, the company's equity increases because it now controls more stock.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

A firm's preferred stock often sells at yields below its bonds because?

corporations owning stock may exclude from income taxes most of the dividend income they revieve.


What is the scale effect economics?

The scale effect indicates what happens to the demand for the firm's inputs as the firm expands production. As long as capital and labor are "normal inputs," the scale effect increases both the firm's employment and capital stock.


Who does Residual income of a firm belongs to?

The residual income of the firm belongs to


Who to open a stock brokerage firm in the US?

requirements to open stock brokerage firm


What is a group of stock brokers called?

A Stock Brokerage or Stock Brokerage Firm.


Why is the stock prices important to a firm?

its inportant to the firm on the cause that it give some reputation, it also ofthen give a valiu of the state of that firm (Notice: the firm can have a low stock and goes good)


When a firm sells a good or service the sale contributes to the nations income?

When a firm sells a good or a service, the sale contributes to the nation's income


When a firm sells a good or a service the sale contributes to the nations income?

When a firm sells a good or a service, the sale contributes to the nation's income


What is Stock of unsold goods held by a firm called?

Stock on hand or inventory


What is the stock symbol for calera corporation?

It is a privat held firm...there is no stock ticker.


What is a firm that specializes in buying and selling stock for individual investors called?

a brokerage firm!


The residual income of the firm belongs to?

residual income belongs to the common stockholders.