Question: Many Companies in recent years have bought back their common stock . For example, IBM with large cash holdings, spent almost $18 billion over three

Many Companies in recent years have bought back their common stock. For example, IBM with large cash holdings, spent almost $18 billion over three years repurchasing its stock. What are reasons companies buy back their own shares? What is the effect of common stock buybacks on earnings per share, return on equity, return on assets, debt to equity and the current ratio?

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