Green Mountain Producers Inc, is an oil-drilling company. The company pald a dividend of $2.20 last year, and, in the past, its dividend has increased steedily by about 4% a year. Green Mountain just announced that its dividend will increase to $2.90 this year, and its share price rose from $33 per share to $35 per share immediately after the announcement. Which of the following best explains why Green Mountain's stock price increased as it did? The signaling hypothesis The clientele effect Dividend irrelevance theory Which of the following statements is true? Taxes on dividend income are paid in the year that they are recelved. Taxes on dividend income are paid when the stock is sold. As a result, the U.S. tax code encourages many individual investors to prefer to recelve Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon. In some cases, analysts notice that groups of similar investors tend to fiock to stociss that have dividend policies consistent with their needs. This. circumstance is an illustration of: the information content elfect. the clientele effect