Acid9658 Acid9658

19-04-2021
Business

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The information content of a regular dividend increase generally signals that:Multiple Choicefuture dividends will be lower.the firm has recently sold a subsidiary.the firm has a one-time surplus of cash.the firm has more cash than it needs due to steadily declining sales.management believes the future earnings of the firm will be strong.

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andromache andromache

23-04-2021

Answer:

management believes the future earnings of the firm will be strong

Explanation:

The information content with respect to the regular dividend would be increase when the company would have a greater amount of earnings in near future and they try to give the greater amount of dividend to the shareholders. This represent the management would trust that the earnings of the future of the firm would be strong

Hence, the last option is correct

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