Transactions in which a firm buys back shares of its own stock, thereby decreasing shares outstanding, increasing EPS, and often, increasing the stock price are known as stock repurchases. Which of the following is not an advantage of a stock repurchase?

a)Stockholders may not be indifferent between dividends and capital gains, and the stock price might benefit more from cash dividends than from repurchases.

b)	A repurchase can remove a large block of stock that is "overhanging" the market and keeping the price per share down.

c)	A repurchase announcement may be viewed as a positive signal by investors because repurchases are often motivated by managements' belief that their firms' shares are undervalued.

d)	Companies that use stock options as an important component of employee compensation can repurchase shares and then reissue those same shares when employees exercise their options.