Alternatives to cash dividendsForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Alternatives to cash dividendsThis topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts August 9, 2016 at 2:27 pm #332207 Anuja NairMemberTopics: 365Replies: 353☆☆☆☆Hi sir, how does a share repurchase scheme increase earnings per share and gearing ? I don’t understand . August 9, 2016 at 3:24 pm #332227 John MoffatKeymasterTopics: 57Replies: 54655☆☆☆☆☆If the company buys back some shares, then there will be fewer shares in issue.The total earnings won’t change, and therefore with fewer shares in issue the EPS will be higher.The total long-term debt won’t change, and therefore with lower share capital the gearing will be higher. August 11, 2016 at 2:55 pm #332720 Anuja NairMemberTopics: 365Replies: 353☆☆☆☆Thank you. August 11, 2016 at 2:55 pm #332721 John MoffatKeymasterTopics: 57Replies: 54655☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In