gnoring possible tax effects and signaling costs, the total value of a firm's equity remains the same irrespective of how the firm distributes its residual eamings-dividends or stock repurchases. Each distribution method has certain advantages and disadvantages. Based on your understanding of dividends and stock repurchases, select the best terms to go wth the statements. Seleict the beast term to complete the sentence Undervalued Overvalued Management is likely to repurchase stock if it believes tha the stock is 7777; this sends positive signals to investors. False Repurchases allow a firm to buy back as much stock as it wants, at whatever price it wants, without affecting shareholders. This statement is 7777 True False Based on the company's earnings in a particular year repurchases can be made on an ad hoc basis without sending any negative signals to investors. This statement is Liquidity ratio Repurchases are also used to make significant adjustments to a firm's 7??7 ratic