Buybacks and Dividends as a Percentage of Net Income Against Spending on Buybacks

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Source: Reuters

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  1. 4whatitsworth commented on Nov 30

    Executives and the board get stock options with a strike price to incent them to make the stock go up. The executive and the board then borrow money to repurchase shares to guarantee that the EPS immediately moves up. The stock goes up and cha-ching! If something happens and the stock does not go up they call a favor from another companies board member and move to a riper situation.

    That’s why these guys make the big bucks the rest of us don’t believe people could be this devious and calculating. I think Waren Buffet said how he really admired the “Financial Innovation” of IBM.

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