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: Smith and Martin Co. is a high-tech company that recently repurchased a number of shares so that it will be able to meet obligations to employees without having to issue any new shares. What is the company's motivation for the stock repurchase? To acquire shares needed for employee options or compensation To distribute excess funds to stockholders 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 repurchase? Check all that apply. The market generally perceives a stock repurchase as a sign that management believes that the firm's stock is undervalued. At times, the company will repurchase its stock at a price higher than the true value of the stock. Stock repurchases are an effective way to change the firm's capital structure when the amount of equity in the current capital structure is significantly greater than the firm's target capital structure