3. (Chapter 14). After the 2008 financial crisis and again after the 2018 tax law which lowered corporate tax rate from 35% to 21%, an increasing number of U.S. publicly traded firms announced stock buyback (repurchase) programs. Congress prohibited firms from using Coronavirus $2.3 trillion stimulus package (Dec. 21, 2020) for stock buybacks. In the newly passed Inflation Reduction of 2022, Congress imposed a 1% tax on the firm's stock buyback funds.

Please explain what benefits or rationale, if any, firms see in stock repurchases and how would investors react to these repurchase programs. You would want to use your understanding of chapter 14 stock repurchase discussion in your answers.

Limit your answers to no more than fifteen (15) sentences.