Consider stock tepurchases. The stock price usually When a firm announces stock repurchase, and a firm usually uses stock repurchases if the maragement considers that the current stock price is increases undervalued decreases, undervalued decrexios overvalued ficranes ovenalued Question 5 A frm declires a REDUCTION in dividend. On average, the stock price of the firm on the declaration/announcement date and on the ex-dividend date. inctomes incleases: decreases incrines. increves decteanes: decreass decreates