Janice believes her firm needs to send a signal to investors. Recent projects have provided a significant increase in cash flows for the firm, and Janice suggests increasing dividend payments. Supporters for the informational role of dividends would claim __________, while opponents would claim __________.

	a.	Janice believes the increase in earnings is a permanent change; Janice is only responding to recent earnings increases, with no consideration of the future.
	b.	stock price should be unchanged with increased dividend payments; stock price should decrease with increased dividend payments
	c.	Janice is finding the "tax efficient" level of dividend payment; Janice is enticing investors with claims of lower taxes
	d.	Janice is deviating from target payout ratios and the firm's stock price will fall; Janice is applying a partial adjustment strategy
	e.	Janice believes she is less informed than shareholders about the firm's prospects; shareholders only need to know about net income levels