FAMACO PLC announces an increase in its annual dividend. The percentage increase is the same as the percentage increase in annual earnings announced at the same time. The market had correctly anticipated the percentage increase in earnings (but not the amount of the increase in the dividend). Previous dividend changes had been well described by the Lintner model. If the stock market is efficient, which of the following describes the most likely stock market reaction to the dividend announcement?

(a) The share price increases.

(b) The share price declines.

(c) The share price remains about the same.