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The analysis on Bob Burger’s Limited aimed at finding the impact of issuance of a buyback plan for its shares on the business performance. In this plan, the business used the option of using two strategies: buying back shares worth $3,000,000 or buying shares worth $5,000,000.
Perpetual Bond Interest rate
Shares worth $3 million are purchased with a bond of a similar amount. The total cost of this bond was high at $42,500 per month
Shares worth $5 million are purchased with a bond of a similar amount. The total cost of this bond was $70,800 per month.
New Total Shares
At the initial stage, the company had shares worth $13, 700,000
A bond of $3, million resulted in shares worth $10,700,000
A bond of $5 million resulted in shares worth $8,700,000
Earnings Per Share
The buyback of $5 million shares resulted in the highest earnings per share
The buyback of $3 million shares had the second highest earnings per share
The earnings per share was least at the original number of shares for the business
EBIT/EPS
This ratio was highest at the original number of shares
The second highest position was from the buyback of $3 million worth of shares
The last position was from the buyback of $5 million worth of shares
NET EPS      
A Net EPS, which was done after deducting interest and tax from the gross incomes showed that:
The buyback of $5 million shares has highest NET EPS
The second highest is buyback of $3million shares
The last is shares at original position
 
To sum up, this model shows buyback of $5 million of shares is the best since it results in highest value for shareholders as shown by NET EPS.