How Stock Repurchases Affect Earnings Per Share

Published: 09 January 2023
on channel: Edspira
2,133
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Companies sometimes use stock repurchases to increase their earnings per share. This video examines how a share repurchase would affect earnings per share in 3 difference scenarios:

Example 1: the company repurchases common shares
Example 2: the company repurchases common shares and incurs an excise tax on the repurchase
Example 3: the company repurchases preferred shares, thereby decreasing the total dividend paid to preferred shareholders

0:00 Introduction
0:57 Example 1 (repurchase of common shares)
3:33 Example 2 (repurchase of common shares with excise tax)
7:06 Example 3 (repurchase of preferred shares)

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