The Share Price Falls When a Dividend Is Paid Because

question 103

Multiple Choice

The share price falls when a dividend is paid because the reduction in cash decreases the ________.

• A) liabilities of the firm
• B) current account of the firm
• C) market value of assets
• D) equity of the firm

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Definitions:

Oil Companies

Corporations involved in the extraction, production, refinement, and distribution of oil and petroleum products.

Corporate America

A term referring to the United States' business sector, particularly large multinational companies and the economic and political influence they wield.

American National Exhibition

An exhibition held in Moscow in 1959, as part of cultural exchanges during the Cold War, showcasing American technology, lifestyle, and art to the Soviet public.

Consumption

The action of using up goods and services by households or individuals, an essential concept in economics that relates to demand and spending habits.