1 According to the Information Effect, why might an announced increase in the firm's dividend be perceived as a bad signal a. Investors might think the dividend growth rates will be unsustainable b. Investors might feel its because of the state of the economy, not managerial actions c. Investors might feel balance sheet cash levels are being compromised d Investors might feel the firm has run out of profitable investment opportunities 2 Which of the following would most likely result in an increase in stock price, all else constant a. a stock split b. a stock dividend c. a stock repurchase d a dividend decrease