Gordon and Lintner, Recognizing That Dividends Affect Stock Prices, Suggest

question 26

Multiple Choice

Gordon and Lintner, recognizing that dividends affect stock prices, suggest that positive effects of dividend increases are attributable ________.

• A) directly to the dividend policy
• B) directly to the optimal capital structure
• C) not to the informational content but to the consistency in the payment of dividends
• D) to the informational content of the dividends with respect to future earnings

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Definitions:

Environmental Legislation

Laws and regulations aimed at preserving and protecting the environment from harm and pollution.

Foul Odour

An unpleasant or offensive smell, often associated with pollution, decay, or chemical substances.

Property Damage

Physical harm or destruction to someone's property.

Environmental Legislation

Laws and regulations aimed at protecting the environment from pollutants and ensuring the conservation of natural resources.