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:

Survival

The act of continuing to live or exist, often despite hardship or danger.

Shoestring Lobbyist

describes a lobbyist or advocacy effort operating with very limited financial resources, often relying on grassroots methods.

Public Policy

The principles, often unwritten, on which social laws are based, developed and implemented by government bodies to address public issues.

Coalition

An alliance or partnership between individuals, groups, or nations formed to achieve a common goal or to address a specific issue.