1. Which of the following is least likely to be a reason why a company would acquire its own stock off the stock market?

A.	to reduce the amount of dividends that would have to be paid to common shareholders.
B.	to signal to investors that the company expects future profitability by increasing earnings-per-share.
C.	to avoid a hostile takeover of the company.
D.	to fund employee-stock compensation packages.

2. At the time of issuance, why would a bond sell for an amount that exceeds the bonds face value?

A.	The bonds are in higher demand because it pays less interest than the market rate of interest.
B.	The bonds are in higher demand because it pays more interest than the market rate of interest.
C.	The bonds are in lower demand because it pays less interest than the market rate of interest.
D.	The bonds are in lower demand because it pays more interest than the market rate of interest.