Stock repurchase, Finance Basics

Stock Repurchase

The company can buy back also several of its outstanding shares instead of paying cash dividends. This is identified as stock repurchase and or bought back or shares repurchased are called treasury Stock. If several outstanding shares are repurchased, fewer shares would remain outstanding.

By assuming repurchase does not adversely affect firm's earnings, E.P.S. of share would go up. This would conclusion increase in M.P.S. so capital gain is substituted to dividends.

Posted Date: 1/31/2013 2:46:50 AM | Location : United States







Related Discussions:- Stock repurchase, Assignment Help, Ask Question on Stock repurchase, Get Answer, Expert's Help, Stock repurchase Discussions

Write discussion on Stock repurchase
Your posts are moderated
Related Questions

Baumol's Model - Optimal Cash Balance An application of the EOQ is the Baumol's model which is inventory model to cash management. Its statements are as: The firm emplo

Define the process of Opening an Account with Broker After a broker has been selected, the investor has to place an order on the broker. The broker will open an account in t


Which of the following is not considered to be an investment objective

Significance of Investment Decisions a) Such type of decisions is importance since they will influence the company's size or like fixed assets, retained and sales earnings.

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate

Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar

What are the factors that affect the interest rate and how?

Advantagesand Disadvantages of IRR Advantages of IRR It seems time value of money It seems cash flows over the whole life of the project. It is compatible along