Inventio Ltd's share price increased today after the company announced that it is decreasing its regular...

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Inventio Ltd's share price increased today after the company announced that it is decreasing its regular cash dividend distributions. Which one of the following explanations may explain investor's positive reaction? (2 Marks) a. Share prices regularly increase upon announcement of a decrease in cash dividend distributions. b. Changes in regular cash dividends are made frequently so that the company's management can adjust for changes in short term earnings. The increase in the share price is probably related to some other positive event. C. Investors previously believed that the company had reached its maturity phase. By announcing a lower regular cash dividend, the company is sending a signal that it has discovered some positive NPV projects for which it could use the cashflows, this is a sign of a lucrative growth opportunity. d. All of the above. Inventio Ltd's share price increased today after the company announced that it is decreasing its regular cash dividend distributions. Which one of the following explanations may explain investor's positive reaction? (2 Marks) a. Share prices regularly increase upon announcement of a decrease in cash dividend distributions. b. Changes in regular cash dividends are made frequently so that the company's management can adjust for changes in short term earnings. The increase in the share price is probably related to some other positive event. C. Investors previously believed that the company had reached its maturity phase. By announcing a lower regular cash dividend, the company is sending a signal that it has discovered some positive NPV projects for which it could use the cashflows, this is a sign of a lucrative growth opportunity. d. All of the above.

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