Accountancy, asked by lovesapanapal, 4 months ago

which of the following are the main objective of buy-back of equity shares?​

Answers

Answered by itzjuno
2

The buy-back of shares reduce the amount of paid-up capital having same amount of debt financing, as such, the same will increase the financial leverage. A firm may change its capital structure after re-purchasing of shares and issuing debt and should ascertain the capital mix between debt and equity.

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