One reason a firm may repurchase its own shares is

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Management may view the firm's future prospects to be bright and therefore decides to repurchase its own shares. This strategy can be used to boost the value of remaining shares and signal to investors that the company believes in its long-term growth potential. Repurchasing shares can also increase earnings per share and return on equity, which can be attractive to investors. Options B, C, and D are not relevant reasons for a firm to repurchase its own shares.

One Reason a Firm May Repurchase Its Own Shares Is