Question
In a well functioning and fully informed capital market, which of the following is NOT correct? A. If investors are surprised by a dividend declaration
In a well functioning and fully informed capital market, which of the following is NOT correct?
A. | If investors are surprised by a dividend declaration that is higher than they expected the stock price is likely to decline on the announcement date.
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B. | If investors are surprised by a dividend declaration that is higher than they expected the stock price is likely to increase on the announcement date.
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C. | If investors are surprised by a dividend declaration that is higher than they expected the stock price is likely to decrease by a larger amount on the ex-dividend date.
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D. | If investors are surprised by a dividend declaration that is higher than they expected the stock price is unlikely to change more on the payment date.
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E. | All of the answers are true. |
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