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On December 11, 2007 AT&T announces that it would increase its divided per share by 12.7%. At the same time the company announced a $15.2

On December 11, 2007 AT&T announces that it would increase its divided per share by 12.7%. At the same time the company announced a $15.2 billion stock buyback plan. The stock price of AT&T closed up 4.1% on that day. Speculate as to why the stock price of AT&T rose only 4.1% while its dividends per share increased 12.7%

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