Parrot Transport Corp.$\text{'}$s board of directors has decided to repurchase some of its stock on the open market because it wants to increase

the company's debt$-$to$-$equity ratio.

What is the company's motivation for the stock repurchase?

To acquire shares needed for employee options or compensation

To protect against a takeover attempt

To adjust the firm's capital structure

To distribute excess funds to stockholders

Which of the following statements would be considered advantages of a stock repurchase? Check all that apply.

A stock repurchase can be used to minimize the dilution effect associated with employees exercising their stock options.

The interval between stock repurchases tends to be irregular, which means that investors cannot always count on cash inflows from

repurchases.

Stock repurchases allow a firm to distribute earnings to investors without changing the amount of the regular cash dividend.