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According to the signaling theory of dividends A) changes in stock prices associated with dividend changes are due to the information conveyed through dividends and
According to the signaling theory of dividends
A) changes in stock prices associated with dividend changes are due to the information conveyed through dividends and not due to dividends themselves
B) firms attract clientele of investors who prefer signals provided by the firm through dividends
C) stock prices decreases associated with a dividend cut is attibutable to reduction of dividends
D) payment of dividends does not affect stock prices because investors can create their own dividend by buying and selling shares
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