Which of the following is most likely to have a negative impact on share price?

Question

Quizplus · Accepted Answer

Cutting the dividend per share in dollar terms is likely to have a negative impact on share price, as it signals to investors that the company is facing financial difficulties or is not confident in its future earnings prospects. A reduction in the dividend payout ratio may also indicate financial difficulties, but it may be seen as a more prudent measure to conserve cash during a difficult economic period. Omitting a share buyback offer or failing to increase the dividend at the same rate as previous years may be viewed as missed opportunities, but are unlikely to have a significant impact on share price in themselves.

Which of the Following Is Most Likely to Have a Negative