The following plot depicts cumulative abnormal returns over 36 months following an announcement for firms that initiated a new dividend and for firms that omitted a planned dividend (initiations and omissions occurred in month O). BRIEFLY discuss whether this evidence supports the efficient market hypothesis. 04 Dividend initiations Dividend omissions 03 02- Mean Buy-and-Hold Abnormal Return 01- -01 -02 12 18 24 30 Months Rel. to Calendar Month End Date of Initiation/Omission The following plot depicts cumulative abnormal returns over 36 months following an announcement for firms that initiated a new dividend and for firms that omitted a planned dividend (initiations and omissions occurred in month O). BRIEFLY discuss whether this evidence supports the efficient market hypothesis. 04 Dividend initiations Dividend omissions 03 02- Mean Buy-and-Hold Abnormal Return 01- -01 -02 12 18 24 30 Months Rel. to Calendar Month End Date of Initiation/Omission