Homework Help Forum: Corporate Finance

Posted by Anonymous on Friday, October 9, 2009 at 1:03am.

Nolan is in favor of a share repurchase. He argues that a repurchase will increase the company’s P/E ratio, return on assets, and return on equity. Are his arguments correct? How will a share repurchase affect the value of the company?

• Corporate Finance - bobpursley, Friday, October 9, 2009 at 3:05pm

  IF Price/share and Earnings per Share are based on outstanding shares, how can repurchase affect P/E, as both are changed the same by changing number of shares.

  
  

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