If not, the acquisition is reduces cash-flow-per-share

If not, the acquisition is reduces cash-flow-per-share. If another company has a high stock-price multiple that Miu Miu Sunglasses,will be unaffected by making the same acquisition, that stock-based purchaser sees its cash-flow-per-share break-even coming at a much higher price for the company.  

Companies with rapid growth in stock price also find that the cash costs of their compensation for key employees falls. Employees are interested in getting stock options rather than cash both because of the upside potential and because tax rates are lower on this income. Further, the stock options don't cheap designer sunglasses,affect company earnings as much as cash payments do.

Also, companies can issue stock to get the cash to make other kinds of investments and purchases. Where the source of this cash is cheap enough, it is like getting a discount on whatever the money is used for.

Here's an example that many people never consider for implementing such a strategy: Issue new stock whenever your multiple is well above its historical trend and buy back share (in excess of what's required to offset Bvlgari Sunglasses employee stock options) whenever your multiple is well below its historical trend level.