Keep the Highest: 1/4 Attempts: 1 10. Stock repurchases There are a number of reasons why a firm might want to repurchase its own stock. Read the statement and then Aa Aa answer the corresponding question about the company's motivation for the stock repurchase: Taft and Polk Corp, is a high-tech company that recently repurchased a number of shares so that it will be able to meet obligations to employees without having to issue any new shares What is the company's motivation for the stock repurchase O To protect against a takeover attempt O To distribute excess funds to stockholders O To acquire shares needed for employee options or compensation O To adjust the firm's capital structure Which of the following statements would be considered advantages of a stock repurchase? Check all that apply Stock repurchases allow a firm to reduce the number of outstanding shares, Increase the frm's share price and make a potential takeover of the company more expensive. The market generally perceives a stock repurchase as a sign that management believes that the firm's stock is undervalued The interval between stock repurchases tends to be irregular, which means that investors cannot always count on cash inflows from repurchases