Q#2 After the 2008 stock market crash, an increasing number of publicly traded firms announced stock buyback (repurchase) programs. Please explain what benefits or rationale, if any, firms see in stock repurchases when their prices are down and how would investors react to these repurchase programs. You would want to use your understanding of chapter 14 stock repurchase discussion in your answers. Limit your answers to no more than ten (10) sentences.

Text book : Financial Management: Theory and Practice, by Brigham and Ehrhardt 14^th Ed.