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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

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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: Merry Melon Fruit Company'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 adjust the firm's capital structure To protect against a takeover attempt To distribute excess funds to stockholders To acquire shares needed for employee options or compensation

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