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1. On Monday, November 30, eBusiness Inc. announced an unexpected increase in dividend from $.0.10 per share to $0.12 per share. In your opinion, the

1. On Monday, November 30, eBusiness Inc. announced an unexpected increase in dividend from $.0.10 per share to $0.12 per share. In your opinion, the share price probably

A. fell because managers have less money to invest.

B. fell because it is a small change and investors know that managers focus on absolute dividend values and not the changes in dividends.

C. rose because dividends would be taxed at a lower tax rate than capital gains.

D. rose because the increase contained information on the firms increased future profitability.

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