Company XYZ is expecting a large increase in earnings, beginning this year, because a new production method that it developed is much more efficient than it had expected. If the company announces a big increase in its dividend, then the stock price is likely to _____________________ on the day it announces the new dividend, and _____________________ on the ex-dividend date.

Which combination should fill in the two blanks above?

A.

decrease; increase

B.

increase; decrease

C.

decrease; stay the same

D.

increase; stay the same

E.

F.

G.

stay the same; decrease

H.

All of these choices are equally likely

I.

stay the same; stay the same