Question Spark Energy, Inc. recently announced a share buyback program. In the release, Nathan Kroeker, Spark Energy’s CEO, states that the $50 million repurchase of the Spark Energy’s outstanding stock will “enhance shareholder value.” Do stock buybacks enhance shareholder value? Explain your answer from a residual operating earnings (ReOI) perspective
Question
Spark Energy, Inc. recently announced a share buyback program. In the release, Nathan Kroeker, Spark Energy’s
CEO, states that the $50 million repurchase of the Spark Energy’s outstanding stock will “enhance shareholder value.”
Do stock buybacks enhance shareholder value? Explain your answer from a residual operating earnings (ReOI) perspective