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 Spandelay Industries Inc. Spandelay Industries Inc. has forecasted a net income of $5, 700,000 for this year. Its common stock currently trades at $21 per share, and it has 720,000 shares of common stock outstanding. It has funds available to pay a cash dividend, but many of its investors don't like the tax liability that dividends subject them to. As a result, the company is considering a stock repurchase in which it would buy back 75,000 shares of its outstanding shares on the open market at the current market price. The repurchase will have no effect on either the company's net income or its price-to-earnings (P/E) ratio. What is Spandelay Industries Inc.'s expected stock price after the stock repurchase? $29.29 $25.77 $23.43 $21.09 Which of these factors are considered an advantage of a stock repurchase? Check all that apply. Stockholders who sell their stock back to the company might claim that they were not made fully aware of all implications of the repurchase. The price of the firm's stock might benefit more from cash dividends than from a repurchase. A repurchase can provide a positive signal to the market that the firm is expected to have higher earnings in the future