According to the information content hypothesis that has been proposed to explain how dividend policies affect stock prices, if a firm increases its dividend, but at a rate that is lower than investors expect, the price of its stock probably would decrease.
Answer the following statement true (T) or false (F)
True
A lower-than-expected dividend increase signals a forecast of poor earnings to the investors. Hence, there is a decline in the price of the stock. See 13-1: Dividend Policy and Stock Value
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The number of standard errors that a point is away from the mean is called the z value
Indicate whether the statement is true or false
Which of the following provides a rough estimate of what a project costs before the actual project has started?
A) AHE B) ROME C) DE D) PARETO
Explain where each of the following items should appear in the financial statements of a corporation: (1) The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance. The after-tax effect of the charge to Insurance Expense was $5,000.(2) The company grants five of its employees the option to purchase 100 shares of its $5 par value common stock at its current market price of $20 per share anytime with the next five years. None of the employees exercised the options in the current year.
What will be an ideal response?
In analyzing an applicant's creditworthiness, a credit manager typically gives primary attention to two of the five C's of credit—collateral and condition—since they represent the most basic requirements for extending credit to an applicant
Indicate whether the statement is true or false