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.

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Definitions:

Healthy Relationships

Interactions characterized by mutual respect, trust, support, and good communication between individuals.

Abnormal

Deviating from what is considered normal or typical, often referring to behaviors, conditions, or phenomena that fall outside societal norms or average patterns.

Paraphrasing Skills

The ability to restate the text or speech in one's own words while maintaining the original meaning.

Misunderstandings

Situations in which the meaning, intention, or effect of communication is not correctly perceived or interpreted by one or more parties.