Which of the following hypotheses/theories suggests that investors regard a change in dividend payments as a signal that the firm's management expects future earnings to also change?

Question

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The information content hypothesis suggests that investors regard a change in dividend payments as a signal that the firm's management expects future earnings to also change. This hypothesis suggests that dividend changes provide important information to investors about the performance and potential future performance of the firm.

Which of the Following Hypotheses/theories Suggests That Investors Regard a Change