Would you please explain what it means in the first proposal when it tells us that the company level of debt be increase by borrowing 20 m further and use the funds raised to buy back share capital ..what it means buying back share capital ???..how should I interpret buy back share capital ..it's in st.of fin position share capital as 48 m dollars...so buy back I did not understand this .
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Qs ennea 6/12
8y ago#1Buying back share capital means using the money to buy the shares on the stock exchange (at whatever the market price is) and then cancelling the shares so they no longer exist.
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