Problem 10.12 (Stock Repurchases) Qu ELE eBook Explain why the stock price of a firm may rise when the firm announces that it is repurchasing its shares. The announcement of stock repurchases implies that investors interpret the announcement as signaling management's perception that the shares are -Select- placing upward pressure on the stock price. -Select- Investors respond favorably to this signal so that the Problem 12.01 (Orders) E eBook Explain the difference between a market order and a limit order. A -Select-order is an order to execute a transaction at the prevailing market price. A -Select-order is an order to execute a transaction only if the price reaches a specified level. Problem 7.04 (Call Provisions) eBook Explain the use of call provisions on bonds. I. A call provision allows investors to exchange the bond for a stated number of shares of the firm's common stock. II. A call provision allows the issuing firm to periodically change the coupon rate of its bonds. III. A call provision allows the issuing firm to purchase its bonds back prior to maturity at a specific price. -Select- How can a call provision affect the price of a bond? A call provision normally requires the firm to pay a price -Select- par value when it calls its bonds