The Information Content of a Dividend Increase Generally Signals That

Multiple Choice

The information content of a dividend increase generally signals that:

A) The firm has a one-time surplus of cash.
B) The firm has few, if any, net present value projects to pursue.
C) Management believes that the future earnings of the firm will be strong.
D) The firm has more cash than it needs due to sales declines.
E) Future dividends will be lower.