Which of the Following Is True of a Dividend Payout

question 38

Multiple Choice

Which of the following is true of a dividend payout?

• A) When a firm announces that it will increase its dividend, the share price usually decreases on that news.
• B) Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.
• C) When a firm pays out dividends the share price will fall.
• D) Dividend payouts have no impact on the share price of a stock in an efficient market.

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Definitions:

Slight Time Difference

A minimal discrepancy in timing between events or processes, often critical in sensory processing and perception.

Energy Difference

The disparity in the amount of energy between two systems, states, or processes, often relevant in physical and chemical phenomena.

Papillae

Small, nipple-like structures on the tongue where taste buds are located, playing a key role in the sense of taste.

Taste Receptor Cells

Specialized cells located on the taste buds of the tongue, responsible for detecting and responding to different taste stimuli such as sweet, salty, bitter, and sour.