Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains.Consider the case of St. Sebastian Company:

St. Sebastian Company expects to earn $5,300,000 this year. The company currently has 830,000 shares outstanding, and the shares have a per-share market price of $21. Assuming that St. Sebastian's price-to-earnings (P/E) ratio remains constant and its earnings are unaffected by a share repurchase transaction, then the company's expected market price per shareif it repurchases 70,000 shares at the current market priceshould be .

Which of these factors are considered an advantage of a stock repurchase?Check all that apply.

Stockholders who sell their stock back to the company might claim that they were not made fully aware of all implications of the repurchase.

Repurchases can be used to produce large-scale changes in capital structure.

A repurchase can remove a large block of stock that is overhanging the market and keeping the per-share price depressed.