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Some Math On ACAS' Capital Returns

Background: The Buyback Program

American Capital Ltd. (NASDAQ:ACAS) evokes strong emotions in those who experienced its collapse as investors in the meltdown that began in 2008. This article doesn't look at pre-2008 metrics to assess whether some past Golden Age has returned to American Capital Ltd., but assesses at metrics from the period of its current dividend-and-share-buyback policy to determine whether management's strategy involving capital returns are working for shareholders or against them.

Prior to the collapse of 2008, ACAS touted its dividend as a major reason to invest. The company's web page continues to laud the $30.32 paid to shareholders as evidence of management's success. A frequent criticism in comments to articles about ACAS is that the...

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