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Management · Q231

Financial Management

Graduate and Post Graduate · Management · question 231

Q231

Dividend changes are perceived important than the absolute level of dividends because.

A.
management change dividends to protect their seats
B.
dividend changes are thought to signal future expectations
Answer
C.
MM state that absolute level of dividends is irrelevant
D.
changes determine the level of borrowing

Answer: Option B

Solution

Answer: Option B
Solution:
Dividend changes are perceived important than the absolute level of dividends because dividend changes are thought to signal future expectations.