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The Information Content of a Regular Dividend Increase Generally Signals

Question 30

Multiple Choice

The information content of a regular dividend increase generally signals that


A) management believes the future earnings of the firm will be strong.
B) the firm has recently sold a subsidiary.
C) the firm has a one-time surplus of cash.
D) the firm has more cash than it needs due to declining sales.
E) future dividends will be lower.

Correct Answer:

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