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Yellowstone recently announced that it will cut its cash dividend this quarter by 50%. You think this is a bad idea because the firm has

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Yellowstone recently announced that it will cut its cash dividend this quarter by 50%. You think this is a bad idea because the firm has enough cash and on hand and will recover from the temporary challenges in the following quarter. You base your assessment on the fact that the market reacts to changes in the firm's dividend policy. This market response is best explained by the Multiple Choice ex-dividend effect information effect. O trade off theory of dividends. clientele effect. dividend irrelevance theory

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