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Share repurchase

SS7y ago
Hi, Please could you let me know how a share repurchase scheme can increase earnings per share and gearing? ? Thank you
John MoffatJohn MoffatTutor7y ago#1
If shares are repurchased they are then cancelled. So there are then fewer shares in issue, therefore the earnings per share will be higher. Since there are fewer shares in issue, the total equity is smaller and therefore the gearing ratio will be higher.
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