Company XYZ is expecting a large increase inearnings, beginning nextquarter, because a new production method that it developed is much more efficient than it had expected. If the company announces a big increase in itsdividend, then the stock price is most likely to_____________________ on the day it announces the new dividend.

Which answer best fills in the blankabove?

a) increase

b) all choices are equally likely

c) stay the same

d) decrease