- Shares repurchases:

In FY2006, EMI bought back 1 million shares. Share repurchase is usually

an indication that the company's management thinks the shares are
undervalued. The company can buy shares directly from the market or
offer its shareholder the option to tender their shares directly to the
company at a fixed price.
- Payout ratio decreased since EMI want to preserve cash to reinvest in the
company or buyback shares though it had the adverse effect on the share
price of company. Moreover, this ratio of EMI is quite high, which account
for 73% in FY2006 and even 83% in FY2005. In FY2006, the payout ratio
reflects that EMI use almost 73% of the earning to pay dividend for
shareholders and just a small amount of 27% for retained earnings to
reinvest or buyback share.