A balance sheet showing the starting conditions before dividends or buybacks Assets Liabilities and Net Worth Cash
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Question:
A balance sheet showing the starting conditions before dividends or buybacks Assets Liabilities and Net Worth Cash $100 $60 Debt Operating Assets $100 $140 Equity 100 outstanding shares at $140 per share Now let's consider a share buyback. The company distributes $70 of that cash by buying back $70 worth of shares What happens to its assets What happens to its liabilities and net worth And what happens to the shareholders how much do they now have Again.
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