What Is the Most Likely Prediction After a Firm Reduces

question 122

Multiple Choice

What is the most likely prediction after a firm reduces its regular dividend payment?

• A)earnings are expected to decline.
• B)investment is expected to increase.
• C)retained earnings are expected to decrease.
• D)share price is expected to increase.

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Definitions:

Atomic Element

A pure chemical substance consisting of one type of atom distinguished by its atomic number, which is the number of protons in its nucleus.

Electrical Conductivity

A measure of how well a material allows the flow of electric current through it.

Valence Shell

Outermost orbital shell in an atom. The number of electrons in the valence plays a role in defining the electrical and physical characteristics of an element.

Chemical Properties

Characteristics of a substance that dictate how it reacts with other substances to form new products.