If a going concern firm wants to divest an unusual amount of cash, which type of

Question

If a going concern firm wants to divest an unusual amount of cash, which type of dividend payment would it most likely make to shareholders?

Select one:

A. Stock dividend

B. Regular dividend

C. Liquidating dividend

D. Special dividend

E. None of the above

Empirical evidence regarding the announcement of a change in dividend policy suggests which of the following?

I. Markets are believed to respond more favorably to an announcement of a dividend increase than to an announcement of a dividend reduction.
II. Announcing growth opportunities at the same time as a dividend reduction appears to have no immediate or long-term impact upon the firm's stock price.
III. Stock prices rarely experience any amount of rebound after an announcement by firms to reduce cash dividend payments, regardless of the reason for the reduction.

Select one:

A. I only

B. II only

C. III only

D. I and II only

E. I and III only

F. II and III only

Explanation / Answer

And 1 special dividend , is the way company can divest unusual amount of cash.

And 2 option A , rest statements are false.

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