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Unformatted text preview: 19 600 Weldon Ltd Shareholders’ equity section of balance sheet as at 30 June 2009 $ Share capital 125 000 General reserve 28 000 Asset revaluation reserve 20 000 Retained profits 19 600 Case 11D 1. Some possible reasons: - if the share price is low it is one way of increasing demand - increases EPS as number of shares decreases (assuming profit does not drop proportionally). - Move considered important part of capital management. 2. More likely if share price is depressed. 3 Cash decreases; a shareholder equity account decreases e.g. retained profits. Profit is not affected but EPS will increase as the denominator falls, i.e. the number of shares....
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This note was uploaded on 09/08/2011 for the course ECON 908 taught by Professor Bullshit during the Spring '11 term at United Theological Seminary.
- Spring '11