Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) Dividend initiations send a weak signal to the market about management's assessment of the firm's long-run ability to general cash.
• B) Dividend initiations send a strong signal to the market about management's assessment of the firm's long-run ability to general cash.
• C) Dividend cuts rarely impact a firm's stock price.
• D) Dividend increases suggest a temporary increase in a firm's normal level of profitability.
• E) All of the above statements are false.

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Definitions:

Implicit Motives

Unconscious drives and desires that influence behavior, often contrasting with explicit motives which are consciously recognized by the individual.

Unconditional Positive Regard

A concept in psychology that implies complete acceptance and support of a person regardless of what they say or do, particularly in a therapist-client relationship.

Power Motivation

The drive to influence others and achieve a position of authority or control in a social or professional context.

Intrinsic Goals

Personal growth, affiliation, and community feeling.