Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)On average, an announcement by a firm's board of directors that they will continue with their current dividend policy has no effect on the price of the stock.
• B)Only the announcement that a firm will begin paying dividends for the first time has any effect on a stock's price.
• C)On average, an announcement of an increase in dividend yields of 10 or more basis points results in a relatively large price increase.
• D)Both A and C are true statements.

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Definitions:

Repetitive

Characterized by or involving repetition, especially in actions, events, or processes, leading to a lack of variety.

Motivational Factors

Elements or conditions that drive individuals to put forth effort towards achieving goals and performing tasks.

Job Enrichment

A method of motivating employees by adding variety, autonomy, and increased responsibility to their roles to enhance job satisfaction and performance.

Redesigning

The process of revising or completely changing the design of a product, service, or system to improve functionality or appearance.