F 18.Empirical evidence indicates that rising dividends are no guarantee that the associated common stock price will also rise in the short run.

Question

Quizplus · Accepted Answer

While rising dividends may be a sign of a company's financial health and future prospects, other factors such as market conditions, investor sentiment, and company-specific news can all impact stock prices in the short term. Therefore, there is no guarantee that a rise in dividends will lead to an immediate rise in stock price.

F 18Empirical Evidence Indicates That Rising Dividends Are No Guarantee That