Replies to post #125176 on InterDigital Inc (IDCC)

[laranger]

Cost of capital.

http://teachmefinance.com/costofcapital.html

[ams13sag]

If so it would not change the debt to equity ratio. If he borrowed to reduce the float, then the ratio would get worse not better, and whilst the p/e impact of a lower float would be positive the interest payable would completely negate any advantage.

The only answer is to ask IR for a logical explanation.

ams