relatively stable D Question 18 1 pts According to the Information Content, or Signaling. Hypothesis relating to dividend policy, ( A dividend increase conveys positive information to investors about management's expectations of the future cash flows of the company. A dividend decrease sends investors a positive signal regarding management's expectations of the future cash flows of the company. (Announcements of unexpected dividend increases or decreases have no information content for the market. since investors are just as informed as managers about the future prospects of the firm, A dividend increase sends a negative signal to the market, because investors do not like dividends. 1 pts D Question 19 The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS