There are a number of reasons why a firm might want to repurchase its own stock. Read the statement and then answer the corresponding question about the company's motivation for the stock repurchase: Washington and Jefferson Inc.'s management is worried that a private equity firm is interested in purchasing the company. The management has decided the company should repurchase its shares on the open market in an attempt to increase the value of firm's stock. What is the company's motivation for the stock repurchase? To adjust the firm's capital structure To acquire shares needed for employee options or compensation To protect against a takeover attempt To distribute excess funds to stockholders Which of the following statements would be considered advantages of a stock repurchase? Check all that apply. Stock repurchases are an effective way to alter the firm's capital structure. Stock repurchases are especially effective when the amount of equity in the current capital structure is significantly greater than that required by the firm's target capital structure. At times, the company will repurchase its stock at a price higher than the true value of the stock. A stock repurchase can be used to minimize the dilution effect associated with employees exercising their stock options