Question: The information content effect implies that stock prices will rise when dividends are increased provided that the dividend increase O causes stockholders to increase their

The information content effect implies that stock prices will rise when dividends are increased provided that the dividend increase O causes stockholders to increase their expectations of future cash flows. O is substantial in both dollar amount and percentage terms O is combined with a stock repurchase. O is denoted as a one-time event. O is greater than the average historical dividend increase

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