Why Are Dividend Changes Rather Than Their Absolute Level Perceived

question 1

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:

Companionate Love

A kind of love characterized by deep affection, attachment, and commitment, typically found in close friendships and long-term romantic relationships.

So-Called

Used to express one's skepticism or disdain about the validity or accuracy of a term or description.

Romantic Love

A deep emotional and affectionate attachment to a person, often characterized by passion, intimacy, and commitment.

Passionate Love

An intense emotional and sexual attraction to a partner, characterized by enthusiasm and a high level of energy in love-related activities.