corporate finance

Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

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

Finance Junkie
Posts: 704
Joined: Wed Apr 09, 2014 6:28 am

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).

Return to “CFA Level I”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.