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A corporate CEO wished to relay good news about the prospect of a new technology being created, but was reluctant to do so given the

A corporate CEO wished to relay good news about the prospect of a new technology being created, but was reluctant to do so given the potential for lawsuits should events change drastically for the worse. Instead, the CEO announced that the firm, feeling good about the future, has decided to increase its dividend. This story is illustrative of what view of dividend relevancy?

Information Signaling
Homemade Dividends
M&M with Taxes
Stock Dividends
Agency Theory

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