Why Are Dividend Changes Rather Than Their Absolute Level Perceived

question 84

Multiple Choice

Why are dividend changes rather than their absolute level perceived to be more important to managers and shareholders?

• A)managers only change dividends under threatening conditions
• B)dividend changes are thought to signal future expectations
• C)MM states that the absolute level of dividends is irrelevant
• D)changes determine whether borrowing must occur

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Definitions:

Preoperational Stage

The second stage in Piaget’s scheme, characterized by inflexible and irreversible mental manipulation of symbols.

Cognitive Development

The study of how thinking, problem solving, and intelligence evolve as people age, primarily focusing on childhood developmental stages.

Mental Representations

The mental forms that a real object or event can take.

Objects

Material things that can be seen and touched, often regarded in contrast to concepts, ideas, or feelings that are intangible.