Procedures for Repurchasing Shares From the stockholders' perspective, share repurchases increase stock prices, assuming that investors continue to apply the same price-to-earnings (P/E) ratio to the earnings per share before and after repurchase.
{"Image DocumentName": "Procedures for Repurchasing Shares", "Image ImageDescription": "From the stockholders\u2019 perspective, share repurchases increase stock prices, assuming that investors continue to apply the same price-to-earnings (P/E) ratio to the earnings per share before and after repurchase. Recall from Chapter 3 that the P/E ratio is equal to the price per share divided by the earnings per share.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}