Which of the following statements is correct? 1) The clientele effect is the best explanation for why companies tend to vary their dividend payments from quarter to quarter. 2) If a company has a 2-for-1 stock split, its stock price should roughly double. 3) Capital gains earned in a share repurchase are taxed less favorably than dividends; this explains why companies typically pay dividends and avoid share repurchases. 4) Stock repurchases increase the number of outstanding shares. 5) 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.