Since year 2000, common stock

Since year 2000, common stock dividends have remained fairly constant while share repurchases have increased dramatically. In 2019 share repurchases hit an all time high. While the pandemic slowed the amount of share buybacks, the pace of share repurchases is starting to return to pre-pandemic levels. Why are so many firms initiating share repurchase programs?

a.) Many firms have excess cash flows after funding current and future investments

b.) A greater percentage of firms that go public are young growth firms

c.) The decrease in individual income tax rates have made share repurchases appealing to shareholders

d.) The decrease in interest rates since the financial crisis

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