The Information Content of Dividends Says That Dividend Increases Send

question 21

True/False

The information content of dividends says that dividend increases send good news about cash flow and earnings,while dividend cuts send bad news.

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Definitions:

Fallacy of Composition

The logical error of assuming what is true of a part is also true for the whole.

Economic Activity

Any actions that involve the production, distribution, and consumption of goods and services within an economy.

Association

A group or organization formed for a specific purpose, or a connection between two or more concepts.

Causation

The relationship between cause and effect where one event directly results in another.