Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by benj111 on Saturday August 10, 2019 @06:17PM
(#20664809)
Except that companies seem to be bad a timing share buybacks [1]
Also your maths is slightly off. If the company uses $1bn to buy back stock, the company is now $1bn poorer. So whilst EPS etc will increase the assets per share may well decrease so I wouldn't necessarily expect the value of the outstanding stock to increase by $1 billion.
Also your maths is slightly off. If the company uses $1bn to buy back stock, the company is now $1bn poorer. So whilst EPS etc will increase the assets per share may well decrease so I wouldn't necessarily expect the value of the outstanding stock to increase by $1 billion.
[1] http://www.barelkarsan.com/2010/12/buybacks-in-style-at-wron...