ThomasTrainTrader
Oct 14, 8:30 PM
$ARE if they buy back
$500 million worth of shares at the current price, they would be also alleviating about
$35 millon of an annual dividends. Since their borrow rate is 5% they would actually be netting +
$10 million or so a year. Honestly not a bad way to spend the huge amount of credit (
$5 billion) that they have secured. On top of all of that they also reclaim a substantial part of the ownership of the company that they can later resell at a much higher value
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