A Corporation Announces a Large Increase in Its Annual Dividend,but

question 90

Multiple Choice

A corporation announces a large increase in its annual dividend,but its stock price declines.This could result from

• A) residual dividend theory.
• B) Bird-in-the-Hand Theory.
• C) perfect capital markets.
• D) MM's indifference theorem.

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Definitions:

Organizational

Relating to an organization or the structured arrangement of people and resources to achieve a specific purpose.

Employee Development

Programs and opportunities provided by organizations to enhance the knowledge, skills, and abilities of their employees for career advancement.

Linking Pin

A concept in organizational design where individuals serve as connectors between two or more groups or levels in a hierarchy, facilitating coordination and communication.

Rensis Likert

A social psychologist who developed the Likert Scale for measuring attitudes and is known for his research on management styles.