Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)Firms adjust dividends relatively infrequently,and dividends are much less volatile than earnings.This practice of maintaining relatively constant dividends is called dividend signaling.
• B)When a firm increases its dividend,it sends a positive signal to investors that management expects to be able to afford the higher dividend for the foreseeable future.
• C)The average size of the stock price reaction increases with the magnitude of the dividend change,and is larger for dividend cuts.
• D)When managers cut the dividend,it may signal that they have given up hope that earnings will rebound in the near term and need to reduce the dividend to save cash.

---

Definitions:

Computer Skills

The ability to operate computer software, hardware, and other digital tools efficiently for various tasks and professional requirements.

Supervisory Role

A position within an organization responsible for overseeing and guiding the work of other employees, often including tasks such as scheduling, training, and performance evaluation.

Sales Presentation

A pitch or demonstration given to a potential client or customer, aimed at promoting and selling a product or service.

Employment Commitment

The level of allegiance and dedication an employee has towards their employer and job responsibilities.