1. Stock repurchases The stock that has been bought back and is not considered outstanding anymore is called There are a number of reasons why a firm might want to repurchase its own stock. Read the statement and then answer the corresponding question about the company's motivation for the stock repurchase: Smith and Martin Co.'s board of directors has decided to repurchase some of its stock on the open market because it wants to increase the company's debt-to-equity ratio. What is the company's motivation for the stock repurchase? To acquire shares needed for employee options or compensation O To distribute excess funds to stockholders O To adjust the firm's capital structure O To protect against a takeover attempt