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(MULTIPLE CHOICE, 1 ANSWER) Which of the following statements accurately describe dividend policy? - Increasing dividends usually signal that managers believe the firm has poor
(MULTIPLE CHOICE, 1 ANSWER) Which of the following statements accurately describe dividend policy?
- Increasing dividends usually signal that managers believe the firm has poor cash flow prospects in the future.
- High dividend payout policy can increase the potential conflict between managers and shareholders.
- None of the other statements are correct.
- More than one of the other statements are correct.
- Managers are usually willing to increase dividends even if the increase in earnings is likely to be unsustainable.
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