Easton (1991)examined the Reaction to Dividend and Profit Announcements and Found

Easton (1991) examined the reaction to dividend and profit announcements and found that:

A) the reaction to dividends was weaker than the reaction to profits.
B) the reaction to dividends was stronger than the reaction to profits.
C) the market takes account of the interrelation of the profit and dividend information.
D) None of the given options is correct.