The Information Content of Dividends Refers to ________

question 86

Multiple Choice

The information content of dividends refers to ________.

• A) the nonpayment of dividends by corporations
• B) dividend changes as indicators of a firm's future
• C) a stable and continuous dividend
• D) a study of firm's history of dividend payments

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Definitions:

Expenses

Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.

Assets

Resources owned by a business or individual, which have economic value and can be used to meet debts or commitments.

Interest Revenue

Income earned from lending money or through investing in interest-bearing assets.

Operating Income

Income generated from a company's regular business activities, excluding deductions of interest and taxes.