Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 17.6, Problem 17.6BCQ
Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE

(Price earnings ratio)

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Students have asked these similar questions
Why would a firm repurchase its stock? Discuss.
How is a stock valued? What are the key variables considered in the valuation?
What is meant by the dividend yield on a common stock investment?

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Fundamentals of Corporate Finance

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