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re: Considerations before purchasing a small business?

Posted on 6/16/13 at 7:16 pm to
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 6/16/13 at 7:16 pm to
quote:

PM has a giant share buyback like $18B i think over 3 years which will reduce shares this will increase earnings


Negative, ghost rider.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 6/16/13 at 7:22 pm to
quote:



Negative, ghost rider.


Could he be talking about earnings per share? Would that not increase ?

If you make x amount of money and there are y amount of shares, earning per share is x/y

If you decrease y by 200 then earnings per share go down to x/(y-200) > x/y assuming y is not less than or equal to 200 and x is non negative
This post was edited on 6/16/13 at 7:23 pm
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