Why a company may buyback stock?

Question

company may buyback stock.
Find one company, which has announced a stock buyback. Then show the following:

1. Company name and stock symbol.
2. Date of the announcement.
3. Reason(s) for the buyback as announced by the company.
4. How many shares are expected to be bought back?
5. Is there a deadline for shares to be bought or tendered?
6. Are there any restrictions associated with this activity by this company?
7. What effect will this have on key company ratios?
8. What will be the effect on the company’s financial statements?
9. State and explain 4 reasons why companies should or should not buy its stock. What are the advantages and disadvantages? Why or why not.

Can someone give me a website that will help answer these questions?

Answer 1

This looks like homework. Here's a few links ..

http://www.investopedia.com/articles/02/041702.asp
http://www.usatoday.com/money/companies/management/2004-02-15-buybacks_x.htm
http://www.informationweek.com/news/showArticle.jhtml?articleID=201800459

Answer 2

The first two iwon't able to answer as i m out of touch, but i wil star from
3) One reason maybe a company do not hav future planning or projects to invest in, & that's y it wil go for buy back and increasing it's shareholders wealth.
4) It depends on the company desire and support of shareholders.
5)no there is no such deadline.
6) Yes, if company do not hav share holders support than, it can be a big problem.
7) Basically the company P/E ratio wil show a dramatical rise & share price wil be corrected at the same time b'coz of total capitalisation divided by no. of shares.
8) The P/E ratio and dividend per share wil be increased in the case and same time the company future earning capacity wil be doubtful.
10) If company do not hav any projects on hand to inject the available cashflow, the only option is to buyback.

Answer 3

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