Companies with exsess cash olten employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their hoidings by seiling their stock to the issuing company and earning from capital gains. Conitiden the case of Petrocy Company? Petroxy Comparny expects to eam 54,800,000 this year. The company currently has 910,000 shares outetandingr and the shares harye a pershare market pece of 119 . Assuming that Petroxy's price-to-eamings (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 regurchases 70,000 shares at the current market price-should be Which of these factors are oonsidered an advantage of a stock repurchase? check an chat apely? A repurchase can remove a large block of stock that is overhanging the market and keeping the pec-share price depressed. Stockholdent who sell the stock back to the company might cham that they were noe made fully aware of ail malications of the repurchsse When mimm distributes clsh by repurchsshg stock, wtockholders have the cotion to e ther sell or nat seli stock