Event Studies of Dividend Omissions Indicate That

question 21

Multiple Choice

Event studies of dividend omissions indicate that:

• A)this type of announcement generally has no effect on abnormal returns.
• B)the cumulative abnormal return remains constant when this type of announcement is made.
• C)stock returns are positively,and efficiently,impacted when dividend omission announcements are made.
• D)this type of an event is incorporated into stock prices slowly over a 10-day period.
• E)the cumulative abnormal return declines on the day prior to and the day of the announcement.

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Definitions:

Children's Meals

Specially designed and portioned meals for children, often featuring nutritional considerations and appealing presentations.

Demand Curve

A graph showing the relationship between the quantity of a good consumers are willing to buy and its price.

Marginal Cost

The cost incurred by producing one additional unit of the product.

Monopolist

A Monopolist is a sole provider of a product or service in a market, facing no competition and having the power to control prices and market supply.