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 earning from capital gains. Consider the case of Sixty-second Avenue Inc.: Note: Round your intermediate calculation to two decimal places. Sixty-second Avenue Manufacturing Inc. expects to earn $4,200,000 this year. The company currently has 790,000 shares outstanding, and the shares have a per-share market price of $19. Assuming that Sixty-second Avenue'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 85,000 shares at the current market price-should be Which of these factors are considered an advantage of a stock repurchase? Check all that apply. A repurchase can provide a positive signal to the market that the firm is expecting to achieve higher earnings in the future. When a firm distributes cash by repurchasing stock, stockholders have the option to either sell or not sell stock. Repurchases can be used to produce large-scale changes in capital structure