Debt-Financed Share Buyback Impact Calculator (INR)

This calculator determines the potential change in EPS by adjusting Net Income for the **after-tax interest expense** of the debt used to fund the buyback.

Formulas Used:

• Initial EPS: $\text{Net Income} / \text{Initial Shares}$
• Shares Reduced: $\text{Buyback Amount} / \text{Current Stock Price}$
• After-Tax Interest Expense (ATIE): $(\text{Buyback Amount} \times \text{Interest Rate}) \times (1 – \text{Tax Rate})$
• Adjusted Net Income (ANI): $\text{Net Income} – \text{ATIE}$
• New Shares: $\text{Initial Shares} – \text{Shares Reduced}$
• New EPS: $\text{ANI} / \text{New Shares}$