The Information Content of a Dividend Increase Generally Signals That

question 34

Multiple Choice

The information content of a dividend increase generally signals that:

• A)the firm has a one-time surplus of cash.
• B)the firm has few, if any, net present value projects to pursue.
• C)management believes that the future earnings and cash flows of the firm will be strong.
• D)the firm has more cash than it needs due to sales declines.
• E)future dividends will be lower.

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Definitions:

Circle

A geometric figure consisting of all points in a plane that are at a given distance (radius) from a given point (the center).

Rectangle

In programming, particularly in graphics, a shape defined by its width, height, and position, often used to draw and manipulate graphical elements.

Constructors

Special methods in object-oriented programming that are called to initialize new objects with specific initial values or states.

Employee

Generally refers to an individual who works part-time or full-time under a contract of employment, typically earning a salary or wage in exchange for their labor.