A recent article in CFO Magazine entitled, "The Buyback Catch," discusses the concept of share repurchase as an alternative to payment of cash dividends. This article examines recent experience and offers insight into the factors that may drive a firm's stock repurchase decision.

After reading this article, answer the following questions: The ideal time to buyback a company's stock is when the market value has fallen appreciably. What is the "Buyback Catch" that is noted by the author? Buyback activity rose significantly following the Asian flu in 1998. When this article was written in March of 2001, conditions were different, suggesting less stock repurchase even though stock prices have declined. What factors are different in the more recent environment? The study by professors Badrinath and Varaiyat sighted in the article identifies five potential reasons for repurchasing stock. What reasons for stock repurchase do they identify?