Does an increase in EPS after share buyback increase shareholder wealth?

CFA Level II Equities
#1

Hi guys,

Does an increase in EPS after share buyback increase shareholder wealth? The study text says it does not.

How can this be? Doesn’t each share yield more earnings?

Regards,

Sharad

#2

Found this article which might help: https://www.fool.com/knowledge-center/does-a-stock-buyback-affect-the-price.aspx

#3

It does not, cause after a buyback the company will have fewer shares, same net income (that’s why each share yield more earnings “per share”) but total wealth is unaffected