10. Stock repurchases Aa Aa 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: Taft and Polk Corp. '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? O To distribute excess funds to stockholders O To adjust the firm's capital structure O To acquire shares needed for employee options or compensation O To protect against a takeover attempt Which of the following statements would be considered advantages of a stock repurchase? Check all that apply. At times, the company will repurchase its stock at a price higher than the true value of the stock A stock repurchase can be used to minimize the dilution effect associated with employees exercising their stock options. Stock repurchases allow a firm to distribute earnings to investors without changing the amount of the regular cash dividend