Assuming that economic conditions remain stable, any management action that would cause current and prospective stockholders to raise their dividend expectations should decrease a firm's value.

Question

Quizplus · Accepted Answer

If management takes actions that increase the expectations of future dividend payments, it can increase the perceived value of the company among investors, leading to increased demand for the stock and potentially driving up the stock price. Therefore, the statement is false.

Assuming That Economic Conditions Remain Stable, Any Management Action That