Why Are Dividend Changes Rather Than Their Absolute Level Perceived

question 55

Multiple Choice

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

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

---

Definitions:

Dyadic Process

A two-way interaction or relationship where both parties influence each other's behavior.

Leader Interaction

The communication and relational dynamics between a leader and their team members or followers.

Subordinate

A subordinate is an individual who works under the direction of someone else, typically answering to a manager or supervisor in the organizational hierarchy.

Intra-Individual Level

Pertaining to processes or variations occurring within a single individual, as opposed to between individuals or in a group.