If a Company Announces a Change in Its Dividend Policy

question 27

True/False

If a company announces a change in its dividend policy from a zero target payout ratio to a 100% payout policy, this action could be expected to increase the value of long-term options (say 5-year options) on the firm's stock.

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Definitions:

Mini-culture

A smaller, distinct culture within a larger culture, characterized by unique traditions, values, or norms that differentiate it from the broader society.

Countercultural Rebels

Individuals or groups that reject the norms, values, and practices of the dominant society to promote alternative cultural norms and values.

Mainstream

Dominant trends or prevailing cultural norms and values that are widely accepted and practiced by the majority within a society.

Crime Family

An organized crime syndicate structured along familial lines, often involved in various illegal activities across generations.