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CTP · Question #221
(Topic 3) The board of directors announces an increase in its dividend from $0.11/share to $0.15/share. Over the next two quarters, management notices that its investor base has shifted to include a…
The correct answer is A. the clientele effect. See the full explanation below for the reasoning.
Question
- (Topic 3)
The board of directors announces an increase in its dividend from $0.11/share to $0.15/share. Over the next two quarters, management notices that its investor base has shifted to include a large percentage of pension funds and endowment funds. This is the result of:
Options
- Athe clientele effect.
- Bthe ex-dividend date.
- Cthe dividend reinvestment plan.
- Ddividend capture.
How the community answered
(31 responses)- A81% (25)
- B6% (2)
- C3% (1)
- D10% (3)
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