财务报表分析与证 券估值优质课件 (23).pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Leverage Creates Earnings Growth but not Value (cont.) After stock repurchase: Leverage introduced with 5 million shares repurchased at $2 each, financed by borrowing at 5%. (Required return for operations = 10%) Value per share is not affected but P/E declines 14-* Leverage and Earnings Growth: A Formula 14-* Do Share Repurchases Add Value ? Share repurchases add to EPS, but do they add value? Consider: Buying shares at fair market value cannot add value See the leverage examples: Share repurchases add to ROCE and to earnings