Explanation:

• Share repurchases are often viewed as a signal that management believes the company's stock is undervalued and that future prospects are positive.
• Decreasing financial leverage is not typically a motivation for share repurchases; in fact, repurchases reduce equity and may increase leverage ratios.
• Companies may choose repurchases over dividends to provide flexibility in capital allocation and to avoid creating expectations for ongoing dividend payments.

Therefore, signaling positive prospects is a key motivation for share repurchases.