Ignoring possible tax effects and signaling costs, the total value of a firm's equity remains the sane irrespective of advantages and disadvantages. Excess cash or a desire to recapitalize usually leads whereas the stock price decreases when dividends are Based on the company's eamings in a particular year, repurchases can be made on an ad hoc basis without sending any negative signals to investors. This statement is Debt-to-equity to a firm's 72?7 ratio