Increasing number of publicly traded firms

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After the severe 2008 stock market crash, an increasing number of publicly traded firms announced stock buyback (repurchase) programs. Most analysts are also predicting that many firms will use the money saved due to the 2018 tax law which lowered highest corporate tax rate from 35% to 21% to repurchase their stock or pay dividends. Please explain what benefits or rationale, if any, firms see in stock repurchases and how would investors react to these repurchase programs. You would want to use your understanding of chapter 14 stock repurchase discussion in your answers. Please let me know if you need to provide chapter 14 - and limit your answer to ten sentences.

Reference no: EM132459848

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