Why Are Dividend Changes Rather Than Their Absolute Level Perceived

question 84

Multiple Choice

Why are dividend changes rather than their absolute level perceived to be more important to managers and shareholders?

• A)managers only change dividends under threatening conditions
• B)dividend changes are thought to signal future expectations
• C)MM states that the absolute level of dividends is irrelevant
• D)changes determine whether borrowing must occur

---

Definitions:

Communalist

A person who advocates or practices communal living or shares a belief in the benefits of communal ownership and control.

Fascist

Describes an authoritarian and nationalistic right-wing system of government and social organization.

Anarchists

Extreme individualists who believe that all government or organization of society should exist only voluntarily and that individuals should govern themselves.

Individualists

Persons or ideologies focusing on the rights and importance of the individual over the collective group.