Which of the Following Would Usually Be the Most Credible

question 125

Multiple Choice

Which of the following would usually be the most credible, positive dividend signal?

• A) A dividend increase when earnings are down
• B) A dividend increase when earnings are up
• C) A dividend decrease when earnings are down
• D) A dividend decrease when earnings are up
• E) No change in dividends when earnings are way down

---

Definitions:

Duress

A situation where a person is forced or coerced into acting against their will through threats, pressure, or intimidation.

Objective Intent

refers to the outward manifestation of a party's intention as it appears to others, used in legal contexts to determine contractual obligations.

Subjective Intent

An individual's personal, internal intentions or motivations, as opposed to how their actions might be viewed by others.

Represented

The act of having someone speak, act, or make decisions on behalf of another person or entity.