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CTP · Question #224
(Topic 3) When a company announces a significant and unexpected dividend increase, it signals to the market that management expects:
The correct answer is A. earnings in future periods will be higher than in past periods. See the full explanation below for the reasoning.
Question
- (Topic 3)
When a company announces a significant and unexpected dividend increase, it signals to the market that management expects:
Options
- Aearnings in future periods will be higher than in past periods.
- Bearnings in future periods will be lower than in past periods.
- Cearnings in future periods will not change.
- Dto split the stock in future periods.
How the community answered
(29 responses)- A72% (21)
- B3% (1)
- C17% (5)
- D7% (2)
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