Stock Buybacks Return on Capital and EVA

When companies buy back stock, they are allowed to reduce the book value of their equity by the market value of the stocks bought back. When the market value of equity is well in excess of book value of equity, buying back stock will generally a. increase the return on capital but not affect the EVA

b. increase the return on capital and increase the EVA

c. not affect the return on capital but increase the EVA

d. none of the above Why or why not?

There is a dataset on the web that summarizes, by sector, the economic value added and the equity economic value added in each.

Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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