The Information Content Effect Implies That Stock Prices Will Rise

Multiple Choice

The information content effect implies that stock prices will rise when dividends are increased provided that the dividend increase:

A) is denoted as a one-time event.
B) causes stockholders to increase their expectations of future cash flows.
C) is greater than the average historical dividend increase.
D) is substantial in both dollar amount and percentage terms.
E) is combined with a stock repurchase.