Everything Else Equal, If Cash Dividends Are Increased

question 30

Multiple Choice

Everything else equal, if cash dividends are increased:

• A) more money will be available for reinvestment in the company.
• B) the expected growth rate will be lowered.
• C) demand for the stock will decrease among investors looking for current income.
• D) the net income of a firm will decrease.
• E) the operating income of the firm will increase.

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Definitions:

Intrinsic Motivation

The pursuit of an activity for its own sake.

Fulfilling Job

Employment that is satisfying and rewarding, often providing a sense of accomplishment and purpose.

Attachment Style

Patterns of attachment behavior that are established in early childhood and affect relationships in adulthood, including secure, anxious, and avoidant attachment styles.

Partner

An individual who is involved in a romantic or sexual relationship with another.