Percent Change in Shares Outstanding returns, percent, already, capital, expected

Muddahudda

This may already have been pointed out by others in AF:

For Grinold Kroner:

Guideline answers to q in 2007 exam clarify the term percent change in shares outstanding ( I got it wrong)


Delta S is the expected percent change in shares outstanding (the negative of the
repurchase yield )

So if they mention repurchase yield to be 1% , then - Delta S is 1%. Completely counterintuitive to me , but makes sense now:

Dividends Reduce capital, and hence the opportunities to earn higher returns per share.
Having +ve Repurchase yield means company buying back shares , so it is a net increase of earnings per share , i.e. more returns per share.