What Is the Most Likely Prediction After a Firm Reduces

question 100

Multiple Choice

What is the most likely prediction after a firm reduces its regular dividend payment?

• A) Earnings are expected to decline.
• B) Investment is expected to increase.
• C) Retained earnings are expected to decrease.
• D) Share price is expected to increase.

---

Definitions:

Apology

An Apology is an expression of regret or remorse for actions or words that have caused harm or offense to another person, often accompanied by an attempt to make amends.

Lawsuit Threat

A warning or indication of potential legal action against a person or entity.

Negative News

Information or reports that convey undesirable or unfavorable information, events, or situations.

Bad News

Information that is unwelcome, disappointing, or upsetting to the recipient.