The Information Content of a Regular Dividend Increase Generally Signals

question 63

Multiple Choice

The information content of a regular dividend increase generally signals that

• A)management believes the future earnings of the firm will be strong.
• B)the firm has recently sold a subsidiary.
• C)the firm has a one-time surplus of cash.
• D)the firm has more cash than it needs due to declining sales.
• E)future dividends will be lower.

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Definitions:

Effortful Control

The capacity to regulate one's behavior, emotions, and thoughts in the pursuit of long-term goals, often in the face of external demands or distractions.

Extraversion/Surgency

A personality trait marked by outward energy, sociability, talkativeness, assertiveness, and a high level of engagement with the external world.

Negative Affectivity

A personality trait characterized by a tendency to experience negative emotions such as sadness, anxiety, and anger more frequently and intensely than others.

Activity Level

A term in developmental psychology referring to the overall energy and frequency of behaviors displayed by an individual.