An Increase in Share Price Following an Increase in Dividends

question 23

Multiple Choice

An increase in share price following an increase in dividends is logical if the:

• A) firm borrows to obtain cash for the dividend.
• B) increased dividend signals higher future earnings.
• C) dividend is believed to be temporary.
• D) clientele effect is not important.

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Definitions:

Design View

A feature in various software applications, especially databases, where users can create or modify structures and elements visually without using code.

Shortcut Menu

A context-sensitive menu that appears when a user right-clicks on an item, displaying a list of common actions related to that item.

Query

A query is a request for data or information from a database which follows a specific format, often used to retrieve specific information or records.

Delete Key

A key on a computer keyboard used to remove characters, files, or data.