corporate finance

Finance Junkie
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corporate finance

Postby chandniwadhwani92 » Sun Nov 23, 2014 4:49 am


As in the corporate finance slide it is given while repurchasing total book vale per share changes but market value per share does not change

Can u explain plz how there wold b effect on book vale but not on market per share

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corporate finance

Postby edupristine » Wed Nov 26, 2014 11:52 am

Market value of shares is sensitive to market behavior and on more data. But the book value will get directly affected by share repurchase.
As the outstanding amount of shares will get reduced after repurchase for example:- If company book value of shares is 40 million and company buys back 5 million shares.
Affect on book value= 40 million - 5 million = 35 million( Book value after repurchase).

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