The Increase in the Stock Price After a Dividend Increase

question 17

Multiple Choice

The increase in the stock price after a dividend increase is called the information content effect because:

• A) the change in dividend was expected by shareholders.
• B) the dividend increase signaled investors to adjust the expectations of future earning upward.
• C) the dividend change signaled investors to adjust the risk of the firm downward.
• D) the dividend change signaled shareholders that the firm could now payout less as they enter the mature phase of their business.

Identify and differentiate between various contractual damages and remedies available to aggrieved parties.

Grasp the legal principles governing the concepts of anticipatory breach and frustration of purpose.

Learn about the special rules that apply to contracts involving the sale of goods and related misrepresentations.

Understand the significance of terms and conditions specified within a contract, such as "time is of the essence."

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Definitions:

Nation

A large group of people united by common cultural, linguistic, or historical ties and often occupying a distinct territory or state.

UN Security Council

A principal organ of the United Nations, charged with maintaining international peace and security, and capable of making binding decisions that member states must implement.

Permanent Members

Refers to the five countries with veto power in the United Nations Security Council: China, France, Russia, the United Kingdom, and the United States.

Veto

The constitutional right of a president, governor, or similar authority to reject a decision or proposal made by a law-making body.