Stock repurchase, Finance Basics

Assignment Help:

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.


Related Discussions:- Stock repurchase

Similarities between preference share capital and debt, Similarities betwee...

Similarities between Preference Share Capital and Debt Similarities between Preference Share Capital and Debt are as follows: a) Both have fixed returns. b) Both do not

Primary markets - financial markets, Primary Markets - Financial Markets ...

Primary Markets - Financial Markets These are markets such deal along with securities that have been issued for the first moment. The money flows directly from transferor or t

Example of market model, Example of Market Model Illustration: For ...

Example of Market Model Illustration: For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as:   1998 Shs. 1999 Shs.

Payback period method - traditional methods, Payback Period Method - Tradit...

Payback Period Method - Traditional Methods This method gauges the viability of a venture via taking the outflows and inflows over time to ascertain how soon a venture can pay

What do you understand by reinsurance, Question 1: (a) (i) What are A...

Question 1: (a) (i) What are Asset shares? (ii) State the purpose of calculating Asset shares. (b) Outline the five uses of policy Asset shares? (c) Lif

Calculate the profit and segment of the organization, Food and Beverages ...

Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale

What are the methods of underwriting, What are the Methods of Underwriting ...

What are the Methods of Underwriting An underwriting agreement may take any of the below three forms: (i) Standing behind the issue: Under this method, underwriter guarant

Central depository system or c.d.s, Central Depository System or C.D.S ...

Central Depository System or C.D.S Its computerized ledger systems which enable the transfer or holding of securities with no necessitate for physical movement.  The shares or

Determine the classification of new issue market, Classification of New Iss...

Classification of New Issue Market New market can be classified as: (i) A market where firms go to public for the first time through initial public offering (IPO). (ii

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd