Unformatted text preview: d. 1341M/91M ~ $14.75 e. Dell paid $26.80 more per share than its employees did under the employee purchase program ($41.54 v. $14.75) 4. Total Assets are reduced by $2.7 billion Share repurchases increase return on equity and decrease leverage: o Return on shareholders’ equity before repurchase: 2177/(5622+2700) = 26.16% o Return on shareholders’ equity after repurchase: 2177/5622 = 38.72% o Leverage Ratio before repurchase: 7813/5622 = 1.39 o Leverage Ratio after repurchase: 7813/(5622+2700) = 0.94 5. a. Dell accounted for their share buybacks as retirement; also there is no mention of Treasury Stock in the Stockholder's Equity report. b. Treasury stock can be reissued and neither affects net income nor results in any accounting gains/losses, while retired shares cannot be reissued....
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- Fall '14
- Shareholder Equity/Total Assets, shareholder equity ratios, a. Dell