What benefit is it to a firm to buy back some of its common stock, increase use of internal financing instead of external financing, replace some equity financing with debt financing, taking a public firm private and paying down some of it's debt?
Buying back common stock in beneficial to a company because it's instant cash/capital invested in the company and it increases the company's earnings per share, price/earnings ratio, return on equity ratio and available funds to invest in ...
Solution Summary
The expert determines what the benefits to a firm to buy back some of its common stocks are.
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