Which of the Following Is Most Likely to Have a Negative

question 110

Multiple Choice

Which of the following is most likely to have a negative impact on share price?

• A)Omitting a share repurchase offer
• B)Failure to increase the dividend at the same rate as previous years
• C)Cutting the dividend per share in dollar terms
• D)Reducing the dividend payout ratio

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Definitions:

Certificate of Limited Partnership

A legal document filed with a governmental body to form a limited partnership.

Oral Agreement

A contract that has been agreed to by speaking rather than in writing. Although legally binding, they are often harder to prove in court.

Winding Down

The process of gradually reducing operations or activities in a business, often in preparation for its closure.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing assets or financial matters.