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The information content of a regular dividend increase generally signals that Multiple Choice the firm has more cash than it needs due to declining sales.

The information content of a regular dividend increase generally signals that

Multiple Choice

the firm has more cash than it needs due to declining sales.

the firm has recently sold a subsidiary.

management believes the future earnings of the firm will be strong.

future dividends will be lower.

the firm has a one

-

time surplus of cash.

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