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On 6 January 2009 Fine Textiles (FTX)Ltd Announces Its Interim

Question 20

Multiple Choice

On 6 January 2009 Fine Textiles (FTX) Ltd announces its interim dividend payment.The interim dividend paid will be 20 per cent lower than last year.The market had expected a decline of 30 per cent relative to last year.What will be the likely impact of this news on Fine Textile's share price?


A) The price will likely remain unchanged after the announcement.
B) The price will likely rise after the announcement.
C) The price will likely fall after the announcement.
D) Any of the above reactions is equally likely.

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