BHP Billiton (GBR) is the world's largest diversified natural resources company. The company extracts and processes minerals, oil, and gas from its production operations located primarily in Australia, the Americas, and southern Africa. BHP Billiton sells its products globally, with sales and marketing taking place through its principal hubs of The Hague and Singapore. Presented below are some basic facts for BHP Billiton.

Instructions
a. What are some of the reasons that management purchases its own shares?
b. Explain how earnings per share might be affected by treasury share transactions.
c. Calculate the ratio of debt to assets for the current and prior years, and discuss the implications of the change.

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Billiton (in thousands) Current Year Prior Year $ 65,986 $ 72,226 Sales Net earnings 11,075 15,532 Total assets 138,109 129,273 Total liabilities 66,074 62,188 Share capital 2,255 2,255 1,912 Reserves 1,970 Retained earnings 66,979 62,236 Treasury shares (540) (533) Number of shares outstanding (millions) 5,322 5,323