Which of the following statements is true?
A) Dividend initiations send a weak signal to the market about management's assessment of the firm's long-run ability to general cash.
B) Dividend initiations send a strong signal to the market about management's assessment of the firm's long-run ability to general cash.
C) Dividend cuts rarely impact a firm's stock price.
D) Dividend increases suggest a temporary increase in a firm's normal level of profitability.
E) All of the above statements are false.
Correct Answer:
Verified
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