If the information content, or signaling, hypothesis is correct, then a change in a firm's dividend policy can have an important effect on its stock price and cost of equity.

Answer the following statement true (T) or false (F)


True

Business

You might also like to view...

Which control is most effective in contributing to the goal of ensure input accuracy in the billing function?

a. compare input shipping notices to sales order master data b. batch sequence checks c. confirm input acceptance d. review shipped not billed sales orders (tickler file)

Business

A larger production volume allows for production and purchasing economies that lower the unit cost of a product, thereby producing a ________ effect

A) scale B) scope C) cluster D) network E) Mohring

Business

Georgio Company began 2015 with net assets of $80,000. Net income calculated by using the capital maintenance concept was $21,000. During 2015, owners contributed $26,000 of new capital. By year-end, the net assets totaled $78,000. Dividends to the owners during 2015 were

A) $49,000. B) $28,000. C) $23,000. D) $2,000.

Business

A liquidating dividend is usually paid when a company is going out of business or reducing its operations

Indicate whether the statement is true or false

Business