A Company May Reacquire Its Own Shares for All of the Following

Multiple Choice

A company may reacquire its own shares for all of the following reasons EXCEPT

A) to increase trading in the company's shares in hopes of enhancing its market value.
B) to reduce the number of shares issued thereby increasing earnings per share.
C) to hold the shares as a long-term investment.
D) to have additional shares available for use in the acquisition of other companies.