A firm has just instituted a regular dividend for the first time in its history.That action might be interpreted in the market as

Question

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Instituting a regular dividend can signal to the market that the firm is confident in its ability to sustain future dividends (A), may indicate that the firm has fewer growth opportunities and is returning cash to shareholders (B), and can also be perceived as a sign of financial stability and quality (C).

A Firm Has Just Instituted a Regular Dividend for the First