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