Which of the following statements regarding the impact of an increase in dividends on the share price of a firm is MOST true?

A. The share price of the firm is likely to go down on the announcement date due to the signaling effect and go up by the amount of the dividend on the ex-dividend date.

B. The share price of the firm is likely to go up on the announcement date due to the signaling effect and go up by the amount of the dividend on the ex-dividend date.

C. The share price of the firm is likely to go down on the announcement date due to the signaling effect and go down by the amount of the dividend on the ex-dividend date.

D. The share price of the firm is likely to go up on the announcement date due to the signaling effect and go down by the amount of the dividend on the ex-dividend date.