The Information Content of a Dividend Increase Generally Signals That

question 69

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 earnings growth will be strong going forward.
• D)the firm has more cash than it needs due to a decline in future orders.
• E)dividends thereafter will be lower.

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Definitions:

Layouts

The arrangement of visual elements in a document, webpage, or physical space, designed to optimize the presentation and accessibility of information.

Caption

A brief explanation or description accompanying an illustration, photo, or diagram in a text.

Visual Aid

Any visual element like charts, graphs, or images, used to enhance the understanding of information.

Significance

The importance or relevance of something, often in terms of its impact or consequences.