Corporation A announces is quarterly dividend will increase from $3.80 to $4.00.After the announcement,the price of Corporation A's stock drops.The most likely explanation is that

Question

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Investors may have been expecting a larger dividend increase or were disappointed that the increase was not as high as they anticipated, which could have led to a decrease in the stock price. This does not necessarily indicate irrational behavior or a perfect market, and the company's debt ratio is not directly related to the stock price reaction.

Corporation a Announces Is Quarterly Dividend Will Increase from $3