9. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and eaming from capital gains. Consider the case of Petroxy Company: Petroxy Manufacturing Company expects to eam S5,300,000 this year. The company currently has 830,000 shares outstanding, and the shares have a per-share market price of $20. Assuming that Petroxy's price-to-earnings (P/E) ratio remains constant and its eamings are unaffected by a share repurchase transaction, then the company's expected market price per share if it repurchases 70,000 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 fim's stock might benefit more from cash dividends than from a repurchase. O Stockholders who sell their stock back to the company might claim that they were not made fully aware of all implications of the repurchase. O When a fim distributes cash by repurchasing stock, stockholders have the option to either sell or not sell stock