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Suppose that the strong form of the Efficient Markets Hypothesis holds. Consider a firm that is cutting its dividend. When would we expect to see

Suppose that the strong form of the Efficient Markets Hypothesis holds. Consider a firm that is cutting its dividend. When would we expect to see an abnormal return?

A.When the board votes to approve the reduced dividend.

B. When the CEO presents the plan to the board.

C. When the firm issues a press release explaining the move.

D. When the financial press reports that sources have indicated a cut is imminent.

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