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Assume That a Firm Has a Steady Record of Paying

question 67

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Assume that a firm has a steady record of paying stable dividends for years.Market analysts had expected management to increase the dividend by 7.5% in the latest quarter.However,management announced a 15% increase in the current year's dividend.The market value of the stock rose 20% on the day of the announcement.Which of the following would best explain the stock market's reaction to the announcement?

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Definitions:

Accepted

Recognized or approved as valid, correct, or satisfactory by a relevant authority or group.

Misleading Information

Incorrect or deceptive information that can distort perceptions, beliefs, or memories about a particular event or subject.

Marital Satisfaction

A measure of the contentment, happiness, and fulfillment individuals feel in their marital relationships.

Long-Term Relationships

Romantic partnerships characterized by commitment, continuity, and emotional attachment over an extended period.

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