Stock repurchases might be undertaken when
A) the firm has excess cash but no "good" investment opportunities
B) the price of the firm's stock is undervalued
C) the firm wants to increase the proportion of its assets that are financed with debt
D) management wants to gain more ownership control of the firm-by repurchasing the stock of other investors
E) All of the above are reasons stock repurchases might be undertaken

Question

Quizplus · Accepted Answer

Stock repurchases can be motivated by various reasons including having excess cash with no good investment opportunities, believing the company's stock is undervalued, desiring to change the capital structure by increasing debt proportion, or management wanting to increase their ownership stake in the company.

Stock Repurchases Might Be Undertaken When