Which of the following statements isFALSE?

A.

Share repurchases are a credible signal that the shares are underpriced, because if they are overpriced a share repurchase is costly for current shareholders.

B.

Managers are much less committed to dividend payments than to share repurchases.

C.

While an increase of afirm's dividend may signalmanagement's optimism regarding its future cashflows, it might also signal a lack of investment opportunities.

D.

Managers will clearly be more likely to repurchase shares if they believe the stock to be undervalued.