AFB,IncDeclared a Dividend of $2 Per Share,which Was an Increase

Multiple Choice

AFB,Inc.declared a dividend of $2 per share,which was an increase of 25% from the prior year,yet AFB,Inc.stock declined by 3% the day of the announcement.DAS,Inc.declared a dividend of $2 per share,which was the same as the prior year,and its stock increased in value by 2% on the day of the announcement.These events could be most readily explained by the

A) information effect.
B) clientele effect.
C) expectations theory.
D) residual dividend theory.