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    Foundations of Finance
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    Exam 13: Dividend Policy and Internal Financing
  5. Question
    The Information Effect Hypothesis Implies That Increasing Dividends Provides a More
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The Information Effect Hypothesis Implies That Increasing Dividends Provides a More

Question 169

Question 169

True/False

The information effect hypothesis implies that increasing dividends provides a more credible signal of higher future earnings than does management's assertion that future earnings will be higher.

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