Easton (1991)examined the Reaction to Dividend and Profit Announcements and Found

question 34

Multiple Choice

Easton (1991) examined the reaction to dividend and profit announcements and found that:

• A)the reaction to dividends was weaker than the reaction to profits.
• B)the reaction to dividends was stronger than the reaction to profits.
• C)the market takes account of the interrelation of the profit and dividend information.
• D)None of the given options is correct.

Understand the real rate of interest and its calculation considering inflation.

Distinguish between capital, money, primary, and secondary markets.

Recognize the role of financial markets and intermediaries in the economy.

Identify the economic sectors of industrialized economies and their components.

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