Managers may increase risk, as you note, by issuing debt to repurchase equity.

ECONOMIST: No soft option

His plan to make a few acquisitions, pay some higher dividends (suspended when the company faltered) and repurchase equity offers shareholders very little as a way to generate high rates of return!

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Alibaba intends to finance the repurchase through a combination of its own cash resources, debt, equity and equity-linked financing.

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