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Question
AFB, Inc. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet AFB, Inc. stock declined by 3% the day of the announcement. DAS, Inc. declared a dividend of $2 per share, which was the same as the prior year, and its stock increased in value by 2% on the day of the announcement. These events could be most readily explained by theA) information effect.
B) clientele effect.
C) expectations theory.
D) residual dividend theory.
Answer
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Related questions
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