3 ms·
> But now my earnings/share goes up as if by magic, and my options are worth more than in the dividend case. That's not correct. The EPS increase is offset by
by appleiigs 7y ago
> But now my earnings/share goes up as if by magic, and my options are worth more than in the dividend case.
That's not correct. The EPS increase is offset by reduction in company value due to less cash. https://business.financialpost.com/opinion/stock-buybacks-are-no-disease-heres-how-they-really-work https://business.financialpost.com/opinion/stock-buybacks-ar...
- Ntrails 7y agoEPS does go up by magic, since it is earnings (not value) divided by shares (which have halved in number). The options bit is a slight fiddle, although empirical evidence supports it.