Stock repurchases Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of Spordyne Inc. Spordyne Inc. expects to earn $5.3 million this year. It currently has 720,000 shares outstanding at a market price per share of $21. Assuming that its price-to-earnings (P/E) ratio remains constant and that earnings are unaffected by the repurchase, what will be the company's expected market price per share if it repurchases 90,000 shares at the current market price? $26.37 $31.16 $23.97 $21.57 Which of these factors are considered an advantage of a stock repurchase? Check all that apply. Repurchases can be used to produce large-scale changes in capital structure. The firm might pay too high a price for the repurchased stock. Stockholders who sell their stock back to the company might claim that they were not made fully aware of all implications of the repurchase