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According to the Information Content, or Signaling, Hypothesis relating to dividend policy, Announcements of unexpected dividend increases or decreases have no information content for the

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According to the Information Content, or Signaling, Hypothesis relating to dividend policy, 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. O A dividend increase conveys positive information to investors about management's expectations of the future cash flows of the company. O A dividend decrease sends investors a positive signal regarding management's expectations of the future cash flows of the company. O A dividend increase sends a negative signal to the market, because investors do not like dividends

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