Question about Share Repurchase whether, company, question, regarding, like

skyjiao

I have a question regarding the share repurchase in Corporate Finnace Section.

When the company decides to repurchase shares, in order to calculate the new EPS, whether we should deduct the cash used to repurchase shares from earnings like what dividends do for calculating EPS.

The calculatino like : EPS = (Earnings - Cash used to repurchase shares)/number of shares after repurchasing

Or we just ignore the cash used for buyback, still use the earnings as: EPS=Earnings/number of shares after buyback

Thanx

胡老师

 EPS=Earnings/number of shares after buyback应该使用这个公式，回购的现金不是费用，不会减少净利润