Blaine will use $209 million of cash from its balance sheet and $50 million in new debt-bearing interest at the rate of 6.75% to repurchase 14.0 million shares at a price of $18.50 per share.

How would such a buyback affect Blaine?

Consider the impact on, among other things, Blaine's EPS and ROE, its interest coverage and debt ratios, the family's ownership interest, and the company's cost of capital?

Answer rating: 100% (QA)

Several effects of the repurchase will be felt by Blaine Here are a few examples Earnings Per Share ... View the full answer