Your CEO asks you: Our recent investments have been very successful, increasing our long-term earnings substantially. Should we increase our dividends or share repurchases?

A. Dividends, because investors will see it as a stronger signal than share repurchases for long-term earnings growth.

B. Dividends, because investors will see it as a stronger signal than share repurchases that the stock is undervalued.

C. Share repurchases, because investors will see it as a stronger signal than dividends for long-term earnings growth.

D. Share repurchases, because investors will see it as a stronger signal than dividends that the stock is undervalued.