Explain how the decision to implement stock buyback program

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Reference no: EM133578665

Discussion Post

Prior to beginning work on this discussion post, read Chapter 5 in the Outsiders and the webpages What Is a Buyback? Stock Buybacks Explained and Principles of Stock Buyback Programs: Explaining Buybacks and How They Affect Earnings per Share..

Many companies implement stock buyback programs in which the corporation repurchases shares from shareholders. A company's decision to engage in a stock buyback program is a capital allocation decision and results in changing the company's capital structure.

In your initial post,

Question 1) Explain how the decision to implement a stock buyback program could be justified based on capital allocation practices.

Question 2) Identify one publicly traded company that engaged in a stock buyback program within the last five years.

Question 3) Describe that company's decision to implement the program, citing evidence from the company's management.

Reference no: EM133578665

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