At the annual shareholders meeting of the company you work for, the CEO points out that after a record year of cash flow, the company plans to spend significant amounts of that cash in a stock repurchase program. What is one reason the Board of Directors and executive leadership of a company would use its excess cash flow to buy back its own shares?

• A. To potentially increase the stock price.

• B. To raise additional capital from growth.

• C. To increase net earnings.

• D. To increase the equity ratio by paying down debt.