As part of an unexpected news announcement, Alpha Co. stated that it is increasing its annual dividend from $1.04 per share to $1.10 per share. What else must the company have also announced if its stock price and total expected return remained constant following this announcement? Assume none of the announcement information was previously expected by the market.

Select one:

a. The firm is planning a new period of rapid growth.

b. The firm will continue to pays it dividend on an annual basis.

c. The growth rate would be less than expected.

d. The growth would be more than expected.

e. Nothing would change.