Question: According to the signalling hypothesis, a higher (lowen than expected dividend signals to investors that the management becomes more optimistic (pessimistic) about the firm's prospects,

"According to the signalling hypothesis, a higher (lowen than expected dividend

"According to the signalling hypothesis, a higher (lowen than expected dividend signals to investors that the management becomes more optimistic (pessimistic) about the firm's prospects, and the stock price adjusts accordingly." Select one: O a False O b. True

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