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now were going to look at something called share repurchases what if you decided that you were not going to pay out your extra cash as a dividend but youre gonna go and repurchase shares now you could look at other things as well like maybe repaying debt but repurchasing shares is a common option because it benefits the common shareholders so essentially when you repurchase shares your equity goes down and as a result youre changing your capital structure of the company and since theres fewer owners of the company afterwards the you know the the ownership share of the percentage of the profit will increase and equity isnt actually a very expensive way of financing the company so reducing that will will be helpful so shareholders as a result of all of this are going to own a larger portion of the company the ones who chose not to sell and then the earnings per share will go up so early exposure again we talked about before is is equal to net income divided by the number of shares o