finally something from somebody: QSFT buying back from $135MM -$400MM of it’s stock, MKt cap is 1.1B so that’s 10- 30% at px range from 13.25-15.25… stock closed at 10.58
in the ken fisher book i bought yesterday, he says a company should buy back stock with debt if they can borrow at a YLD lower the EPS yld on thier stock ex: if PE = 16, earnings yld = 6,2%. firm borrows @ 4%. They should issue debt to buy stock - IS THIS ALWAYS TRUE??? thanks in advance
daj224 Wrote: ------------------------------------------------------- > in the ken fisher book i bought yesterday, he says > a company should buy back stock with debt if they > can borrow at a YLD lower the EPS yld on thier > stock > > ex: if PE = 16, earnings yld = 6,2%. firm borrows > @ 4%. They should issue debt to buy stock - IS > THIS ALWAYS TRUE??? thanks in advance well if the EPS is guarenteed, (which it’s not) then yes. unforuntately, they are just leveraging up. ie should I pay down my debt that is financed at 6% or should I invest in HY bonds that yield 18%?