Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 43)
What impact does a share buyback have on a company's capital structure?
It increases the issued share capital.
It increases the company's liabilities.
It decreases the company's shareholder equity.
It has no impact on the company's capital structure.
Explanation
A share buyback reduces the number of shares outstanding, decreasing equity.
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