Multiple Choice
Financial markets react when a firm pays or chooses not to pay a dividend. A dividend announcement is a way for management to send a message to shareholders. This is known as the __________________.
A) Clientele Effect
B) Residual Dividend Theory
C) Signaling Effect
D) Expectations Theory
Correct Answer:

Verified
Correct Answer:
Verified
Q103: A stock dividend will not affect which
Q104: Under dividend preference investors prefer immediate cash
Q105: If a firm follows a stable dividend
Q106: Which of the following are realistic motives
Q107: Brokers have agreed to cut off sales
Q109: In order to receive the dividend on
Q110: If a firm always pays the same
Q111: Taxes play a subtle role in the
Q112: A 1-for-4 reverse stock split refers to
Q113: An increase in a firm's payout ratio