The Market's Reaction to the Announcement of a Change in the fiRm's

question 44

Multiple Choice

The market's reaction to the announcement of a change in the firm's dividend payout is likely the:

• A)information content effect.
• B)clientele effect.
• C)efficient markets hypothesis.
• D)MM Proposition I.
• E)MM Proposition II.

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Definitions:

Cesar Chavez

An American labor leader and civil rights activist who co-founded the United Farm Workers union, playing a key role in the Chicano movement.

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The highest judicial court in the United States, which has the ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

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A landmark 1967 Supreme Court case that declared state laws banning interracial marriage unconstitutional, thus allowing Richard and Mildred Loving, and others like them, to legally marry.