Modeling Managers as EPS Maximizers
Reynolds Holding
APRIL 25, 2023
For example, a firm engages in a debt-financed repurchase if the negative impact of the increased interest expense on EPS (through the denominator) is smaller than the positive impact associated with decreasing the number of shares (through the numerator). Review of Corporate Finance Studies 8(1), 174–206. REFERENCES Almeida, H.
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