Question 16 5 points Save Answer Which of the following statements is correct? O a Stock repurchases increase the number of outstanding shares. b. The clientele effect is the best explanation for why companies tend to vary their dividend payments from quarter to quarter, c. If a company has a 2.for stock split, its stock price should roughly double Od. Very often, a company's stock price will rise when it announces that it plans to commence a share repurchase program. Such an announcement could lead to a stock price decline, but this does not normally happen. Oe. Capital gains earned in a share repurchase are taxed less favorably than dividends, this caplains why companies typically pay dividends and avoid share repurchases