Unexpected dividend changes would cause investors to reassess their perceptions about a firm's shares.

Name: Unexpected dividend changes would cause investors to reassess their perceptions about a firm's shares.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a firm unexpectedly increases or decreases its dividend, it may signal a change in the firm's financial performance or future prospects, leading investors to reassess their perceptions and potentially altering the demand for the firm's shares.

Unexpected Dividend Changes Would Cause Investors to Reassess Their Perceptions