So BAC will be buying back 5B worth of common stock over the next year, that works out to be approx 1.5M shares a day at current prices (1.5M x 13 = 19.5M x 240 days ). In order to get back to original share count of 4B outstanding shares from current 10B we are looking at approx 16 years ( 6b shares / 1.5M a day ) . I am assuming at 4B shares we would also visit the old high ( 55 a share) and a 64 c quarterly dividend. That works out to be an approx return of 12% per year for 16 years (excluding dividends) . Not Bad!
there is no assumed proper share count. They don't HAVE to get back to the old 4.4B share count. What is important is what they make profit per share and before the crisis they did not own Merrill and CW.
I think the share float was already over six billion just before CW. I have more modest expectations on the buybacks, after all there were two of them plus Warren Buffet's shares and some additional restricted shares for officers.
Considering that everytihng is based on earnings per share (you've heard of that, right?) BAC will never produce a decent EPS (and certainly not what it was pre-recession) with a 10+B share count. It's simple mathematics and your comment pretty much says you haven't got a clue. BAC needs to seriously lower the share count. Look at its peers. Show me one that comes even close to this huge share count.