The Manager of XYZ Corp

question 11

Multiple Choice

The manager of XYZ Corp.feels that a dividend increase will increase stock price because many investors value stock with a dividend-discount model.Why might MM disagree with this assertion?

• A) The increased dividend makes the firm much riskier.
• B) Future dividend growth may slow due to lower retained earnings.
• C) Investors prefer capital gains over dividends.
• D) Dividend increases will increase the book value but not the market value of the firm.

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Definitions:

Online Shopping Transactions

Financial transactions made over the internet involving the buying and selling of goods or services.

Payment Fraud

Illegal transactions aimed at deceitfully obtaining money, goods, or services by manipulating payment processes.

Chargeback

A transaction reversal usually initiated by the cardholder's bank, intended to serve as a form of consumer protection from fraudulent activity.

Internet Fraud

Deceptive practices and scams perpetrated online, aiming to defraud victims through means like phishing, identity theft, and financial exploitation.