19. Which of the following statements about dividends and share repurchases is incorrect?

a. Relative to cash dividends, share repurchases offer greater flexibility to corporate managers

b. All else equal, a share repurchase will cause an increase in the earnings per share of a firm reporting a net profit

c. Share repurchases help to offset the dilution that results from the exercise of managerial stock options

d. Dividends can have the unintended consequence of reducing the value of managerial stock options

e. Compared to periods of overvaluation, periods of undervaluation are characterized by a reduced incentive for corporations to repurchase shares