1. Treasury stock is reported in the:

A. financing section of the income statement.

B. stockholders' equity section of the balance sheet.

C. liability section of the balance sheet.

D. operating section of the income statement.

2. All other things being equal, when companies repurchases its common stock:

A. EPS decreases and ROE increases.

B. EPS increases and ROE stays the same.

C. EPS increases and ROE decreases.

D. EPS and ROE both increase.

MC Qu. 39 Equity and debt financing both have their... Equity and debt financing both have their advantages and disadvantages. Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? Debt Financing Equity Financing Dividends are optional Changes stockholder contro A Debt Financing Equity Financing Does not change stockholder Does not have to be repaid control Debt Financing Equity Financing Does not have to be repaid Interest is tax deductible Debt Financing Equity Financing Interest is tax deductible Dividends are optional ) Option A Option B Option C OOption D