Assume that a firm has a steady record of paying high dividends for years. A new management
team decided to cut the current year's dividend in half without disclosing why.
The market value of
the stock fell 35% on the day the dividend cut was announced. Which of the following would best
explain the stock market's reaction to the announcement?
A) residual dividend theory B) information effect
C) empirical theory D) dividend irrelevance theory
B
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Management accounting activities
a. are synonymous with financial accounting activities. b. substitute for the management cycle. c. complement the management cycle. d. have nothing to do with the management cycle.
A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of:
A) internal benchmarking. B) Six Sigma. C) ISO 9000. D) Taguchi concepts. E) process control charts.
Notes and certificates of deposit are orders to pay money
a. True b. False Indicate whether the statement is true or false
A liquidated damages provision in a contract specifies a certain amount to be paid in the event of a default or breach of contract
a. True b. False Indicate whether the statement is true or false