Which of the Following Is True Regarding Earnings and Dividends?
A)Managers Adjust Dividends Primarily to Dividends
Which of the following is true regarding earnings and dividends?
A) Managers adjust dividends primarily to reflect the change in current earnings.
B) Stock price may be modeled as the present value of future expected dividends.
C) Investors regard cash dividends as credible signals of future performance.
D) Current income has a value in predicting future dividends.
Correct Answer:
Verified
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