dddolphin

Initial Net Income = 40mil * 1.4 = 56 mil $

Use 20mil $, remain 40mil - 20mil = 20 mil $ -- y

Shares outstanding after repurchase  = 40 mil - 20 mil $ / 28$  -- x

EPS = y / x = 1.12 $/share

EPS reduces after repurchasing.

This is my understand, if wrong, can someone else please correct me.

[em01]

[此贴子已经被作者于2007-5-17 17:47:50编辑过]