Why Are Dividend Changes Rather Than the Absolute Level of Dividends

question 92

Multiple Choice

Why are dividend changes rather than the absolute level of dividends perceived to be more important to managers and shareholders?

• A) Managers change dividends only under threatening conditions.
• B) Dividend changes are thought to signal future expectations.
• C) MM's argument states that the absolute level of dividends is irrelevant.
• D) Dividend changes determine whether borrowing must occur.

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Loan Manager

A professional responsible for managing the approval and distribution of loans for individuals or businesses.

Sales Call

A communication or visit made by a salesperson or representative to a potential buyer for the purpose of promoting, selling products, or services.

Professional Presence

The projection of confidence, competency, and credibility in workplace behavior and appearance.

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Clothing, considered collectively, especially as items worn on the body.