Question: Identify the true statement regarding dividends. Multiple choice question. The payment of cash dividends indicates that management expects future operating cash flows to be favorable.

Identify the true statement regarding dividends.
Multiple choice question.
The payment of cash dividends indicates that management expects future operating cash flows to be favorable.
An increase in cash dividends indicates that management expects future operating cash flows to decrease.
Like interest expense, dividends are tax deductible

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