Final answer:
Corporations repurchase stock to provide stock for employee compensation, maintain a favorable stock price, and improve financial ratios. Option d.
Step-by-step explanation:
Corporations repurchase stock for several reasons, but not to facilitate unwanted takeover or buyout attempts. This action is generally undertaken for defensive measures. Let's explore the reasons in detail:
Employee bonuses: Companies repurchase stock to have shares available to distribute to employees as part of compensation, typically as bonuses or in stock option plans.
Maintain stock price: By reducing the supply of shares in the market, a corporation can help maintain or increase the market price of its stock.
Financial ratios: Repurchased stock can lead to an improved appearance of financial ratios, such as earnings per share, because there are fewer shares outstanding.
Facilitating unwanted takeover or buyout attempts is not a reason for stock repurchase; in fact, companies may repurchase shares to prevent such situations by reducing the number of shares available for potential acquirers.
So option d is correct.