Holding All Else Constant,an Increase in Dividend Implies A

question 6

Multiple Choice

Holding all else constant,an increase in dividend implies a:

• A)a higher retention rate.
• B)a decrease in earnings per share.
• C)lower cash flows.
• D)higher share price.

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Definitions:

Unrealized

Referring to profits or losses that have occurred on paper due to changes in the value of assets or investments but have not been actualized through a sale or transaction.

Intercompany Profits

Earnings generated from transactions between divisions or subsidiaries within the same corporation, which may be eliminated in consolidated financial statements.

Inventory

The items a business holds for the main purpose of resale or the raw materials used to produce goods for sale.

Management Fees

Fees charged by managers for the operation, management, or administration of a property, fund, or project.