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The information content of a dividend increase geneally signals that 0 the firm has a one-time surplus of cash. O future dividends will be lower.

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The information content of a dividend increase geneally signals that 0 the firm has a one-time surplus of cash. O future dividends will be lower. O the firm has several net present value projects to pursue. 0 the firm has more cash than it needs due to sales declines. O management believes the future earnings of the firm will be strong

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