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Microsoft is planning to buy back almost 10% of itself

Sep 21, 2016, 02:08 IST

Microsoft CEO Satya Nadella speaks during a Microsoft cloud briefing event in San Francisco, California October 20, 2014.Robert Galbraith/Reuters

Microsoft is buying back a whole bunch of itself.

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The tech behemoth said it has authorized a $40 billion share buyback program, according to a release from the firm. With the market cap ending trading on Tuesday at roughly $440 billion, this means the firm is buying back just over 9% of the outstanding shares.

This is the second $40 billion buyback program for Microsoft, and the company said it will complete the first round by the end of 2016.

Microsoft also said it was raising its dividend by $0.03 per share to $0.39 per share for the quarter.

Following the announcement, shares of Microsoft ticked up 1.21% in after-market trading to $57.50 per share.

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