What are the reasons companies buy back their own shares

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Reference no: EM13914176

Business application- Many companies in recent years have bought back their common stock. For example, IBM, with large cash holdings, spent almost $350 billion over three years repurchasing its stock.19 What are the reasons companies buy back their own shares? What is the effect of common stock buybacks on earnings per share, return on equity, return on assets, debt to equity, and the current ratio?

Reference no: EM13914176

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