Which of the Following Is True Regarding the Information Effect

question 81

Multiple Choice

Which of the following is true regarding The Information Effect of dividend policies?

• A) Increases in dividends are seen as negative signals concerning the firm's performance.
• B) Increases in dividends are seen as negative signals concerning the firm's expected future cash flow levels.
• C) If a firm announces an increase in the next dividend, analysts see such announcements as a very positive signal.
• D) If a firm announces an increase in the next dividend, analysts see such announcements as a very negative signal.

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Definitions:

Describing Feelings

The process of identifying and communicating one's emotional state using specific and accurate verbal expressions.

Sales Associate

An employee in a retail or wholesale business responsible for selling products or services to customers, offering advice, and assisting with purchases.

Constructive Criticism

An approach to providing feedback that is intended to help someone improve, focusing on positive ways to make changes.

I-statements

A communication technique used to express one's feelings and needs assertively and non-defensively by focusing on the speaker's experiences rather than accusing or blaming others.