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The information content of a dividend increase generally signals that: Question 7 options: the firm has more cash than it needs due to sales declines.

The information content of a dividend increase generally signals that:
Question 7 options:
the firm has more cash than it needs due to sales declines.
future dividends will be lower.
the firm has few, if any, net present value projects to pursue.
the firm has a one-time surplus of cash.
management believes that the future earnings of the firm will be strong.

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