In a newspaper article entitled ‘Domino’s set to buy back its own slices’ (Courier Mail, 22 December 2018, p. 55) it was reported that the pizza company Domino’s would buy back some shares at such times and in such circumstances as are considered by management to be beneficial to the efficient capital management of the company. The article also noted that Domino’s said the buyback is expected to boost earnings per share.

REQUIRED

Why would the proposed share buyback boost earnings per share