4. consider stock repurchases. The stock price usually _________ when a firm announces stock repurchase, and a firm usually uses stock repurchases if the management considers that the current stock price is ____________.

Group of answer choices

decreases; overvalued

increases; overvalued

decreases; undervalued

increases; undervalued

5. In general, leverage __________ the returns to shareholders if the EBIT is high, and leverage ________ the variation of the ROE.

Group of answer choices

decreases; decreases

decreases; increases

increases; increases

increases; decreases

6.

A firm declares a REDUCTION in dividend.

On average, the stock price of the firm ________________ on the declaration/announcement date and ______________ on the ex-dividend date.

Group of answer choices

decreases; increases

increases; decreases

increases; increases

decreaes; decreases