What is the companys motivation for the stock repurchase?

To acquire shares needed for employee options or compensation

To adjust the firms capital structure

To protect against a takeover attempt

To distribute excess funds to stockholders

Which of the following statements would be considered advantages of a stock repurchase? Check all that apply.

Stock repurchases allow a firm to distribute earnings to investors without changing the amount of the regular cash dividend.

The interval between stock repurchases tends to be irregular, which means that investors cannot always count on cash inflows from repurchases.

The market generally perceives a stock repurchase as a sign that management believes that the firms stock is undervalued.