An Increase in Dividends Might Not Increase Price and May

question 84

Multiple Choice

An increase in dividends might not increase price and may actually decrease stock price if:

• A) the dividend increase cannot be sustained.
• B) the firm does not maintain an exact dividend payout ratio.
• C) the firm has too much retained earnings.
• D) markets are weak-form efficient.

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Definitions:

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Impaired Brain Functioning

Deterioration or abnormal functioning of brain processes, affecting cognitive abilities, emotional regulation, or physical coordination.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

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Scientists who study human societies, covering a broad range of topics from social behavior, culture, to institutions and their development.