Low interest rates : Who gets the benefit ?

The Government’s reasoning in reducing interest rates is assisting corporate in capacity enhancement but in reality they use to buy back their own shares and repay their old debt taken at much higher rates. When a corporate buys back and extinguishes its own shares, fewer number of shares remain in the open market. This pushes up the earnings per share of the company. This in turn pushes up the share price. A higher earnings per share leads to a higher market price