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 Happy Orange Storage Company's board of directors has decided to repurchase some of its stock on the open market because the company has received a large, one time cash flow, and it believes that the company's stock is undervalued. What is the company's motivation for the stock repurchase? To distribute excess funds to stockholders To acquire shares needed for employee options or compensation To adjust the firm's capital structure To protect against a takeover attempt Which of the following statements would be considered advantages of a stock ropurchase? Check at that apply The interval between stock repurchases tends to be irregular, which means that investors cannot always count on carshartlws from repurchases The market generally perceives a stock repurchase as a sign that management believes that the stock is onderhed Stock repurchases are an effective way to alter the firm's capital structure Stock purchases are especially efective when the amount equity in the current capital structure is significantly greater than that required by the terms target capital structure