D????????-4????. Interpreting ????arket Reactions to Accounting Information On December 11, 2007, AT????T Inc. announced that it would increase its dividend per share by 12.7%.
At the same time the company announced a $15.2 billion stock buyback plan. The stock price of AT&T closed up 4.1% on that day.
Required

a. Explain why AT&T’s stock price reacted positively to those announcements.

b. Speculate as to why the stock price of AT&T rose only 4.1% while its dividends per share increased 12.7%.