When a firm raises its dividend, the information content is usually positive for investors.

Name: When a firm raises its dividend, the information content is usually positive for investors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company raises its dividend, it signals to investors that the company is performing well and has enough cash flow to distribute to shareholders. This generally leads to an increase in the stock price and is viewed positively by investors.

When a Firm Raises Its Dividend, the Information Content Is