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: Purple Pigeon Bird Seed Company'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 the firm's stock. 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. 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. The interval between stock repurchases tends to be irregular, which means that investors carinot always count on cash inflows from repurchases A stock repurchase can be used to minimize the dilution effect associated with employees exercising their stock options