How can the stock repurchase increase earnings per share

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Topic

Many of the largest corporations in the United States have accumulated hugh amounts of excess cash on their balance sheets. Some have adopted a policy of returning value to shareholders by either payment of a cash dividend or repurchasing their outstanding stock on the open market.

How can the stock repurchase increase earnings per share?
How can the stock repurchase increase the market price of the company's stock?
Explain other uses of the excess cash that could have increased shareholder value.

From the following list, select three corporations that have announced stock buybacks and explain their reasoning for the repurchase. Do you agree with the corporation stock repurchase programs?

Reference no: EM131783246

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