anvas 0 AQP 4 O There is no relationship between a firm's dividend policy and the value of its common stock. All of the above. Question 5 A corporation announces a large increase in its annual dividend, but its stock price declines. This could result from bird-in-the-hand theory. O perfect capital markets. O residual dividend theory. O MM's indifference theorem. Question 6 One potential reason for a share repurchase is maximize the dilution in earnings associated with a merger. O to signal the market that the firm's stock price is too high. a reduction in the firm's cost associated with servicing small stockholders. to increase the power of a minority group of shareholders. SONY