Which of the following statements about dividends and share repurchases is incorrect? All else equal, a share repurchase will cause an increase in the earnings per share of a firm reporting a net profit Dividends can have the unintended consequence of reducing the value of managerial stock options Compared to periods of overvaluation, periods of undervaluation are characterized by a reduced incentive for corporations to repurchase shares Relative to cash dividends, share repurchases offer greater flexibility to corporate managers Share repurchases help to offset the dilution that results from the exercise of managerial stock options