Dividend changes as signals of management earnings forecasts

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Reference no: EM131989610

1. The theory that investors regard dividend changes as signals of management's earnings forecasts is called the _____.

a. information content hypothesis

b. stock splits theory

c. capital structure effect

d. weighted average hypothesis

e. residual earnings policy

2. The benefits that accrue to a client from using a financial planner to prepare a financial plan include all of the following except:

A. Increased awareness on client's part as to opportunity costs.

B. A financial planner will identify risks in the process.

C. The financial planner is subjective and knowledgeable.

D. A professional planner will include metrics.

Reference no: EM131989610

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