Assume Company X has been paying out consistent dividends over the past $40$ years. This fiscal year, the company reports a sharp decline in the dividend it plans to pay out.

The most likely reaction of the market will be:

Select one:

A$.$

Company X$\text{'}$s stock price will decrease

B$.$

Company X$\text{'}$s stock price will increase initially and then decline

C$.$

Company X$\text{'}$s stock price will remain constant

D$.$

None of the above