Upload
anik-debnath
View
35
Download
1
Embed Size (px)
Citation preview
Do Share buybacks add valueFor Investors: • 30% of present free cash flows to go repurchases• Number of outstanding shares are decreased • Early stage investors makes money • Assets and EPS goes up
For Companies: • Average age of plant and equipment is 22 years• Investment in plant and equipment up to 40%• Free cash flow used to buy back does not increase Corporate performance. It only increases share price.