Which of the Following Statements Is FALSE

question 43

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 so need to reduce the dividend to save cash.

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Definitions:

Single Step

A debugging feature in software development that executes code one instruction at a time, allowing for detailed examination of the program's behavior.

Debug

The process of identifying, tracing, and correcting errors or bugs in a computer program or system.

Macro

A macro is a set of commands or instructions grouped together as a single command to accomplish a task automatically.

Add Actions

In programming and application development, this refers to the function of incorporating new operations or functionalities into a software process or workflow.