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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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