9. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase pians can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of Gadgetron Company Gadgetron Manufacturing Company expects to earn $5,700,000 this year. The company currently has 790,000 shares outstanding, and the shares have a per-share market price of $18. Assuming that Gadgetron's price-to earnings (P/E) ratio remains constant and its earnings are unaffected by a share repurchase transaction, then the company's expected market price per share-if it repurchases 90,000 shares at the current market price should be Which of these factors are considered an advantage of a stock repurchase? Check all that apply. The price of the firm's stock might benefit more from cash dividends than from a repurchase. Repurdi ses can be used to produce large-scale changes in capital structure. l when a firm distributes cash by repurchasing stock, stockholders have the option to either sell or not sell stock