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Which one of the following statements is correct? A. Asymmetric information causes the increase of stock prices B. When a firm repurchases stocks, the EPS

Which one of the following statements is correct?

A.

Asymmetric information causes the increase of stock prices

B.

When a firm repurchases stocks, the EPS increases because of the improvement of its profitability

C.

Share repurchases tend to increase agency costs

D.

Cash dividend is not beneficial for stork owners because a stock price goes down

E.

Under the assumptions of no taxes and no market imperfection, the impact of stock repurchases and that of cash dividend on a firm value are identical

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