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QuickBook Ltd is experiencing rapid growth and it is planning to announce an increase in dividend in the near future. The management anticipates that, the

QuickBook Ltd is experiencing rapid growth and it is planning to announce an increase in dividend in the near future. The management anticipates that, the announcement of a dividend increase by a growth company (like theirs) may have impact such as____

a: increase in price due to expectation of increased cash flow.

b: drop in price due to lower perceived growth opportunities.

c: increase in price due to enhanced growth rate.

d: drop in price from higher shareholder scrutiny.

Additionally, high present value of growth opportunities most likely will correspond with___

a: high PE (Price to Earnings) ratios.

b: decreased volatility.

c: low plowback ratios.

d: high asset turnover.

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