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    Financial Management Principles and Applications
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    Exam 16: Dividend Policy
  5. Question
    The Information Effect of Dividends Suggests That Dividends Are an Important
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The Information Effect of Dividends Suggests That Dividends Are an Important

Question 21

Question 21

True/False

The information effect of dividends suggests that dividends are an important communication tool since management might have no other credible way to inform investors about future earnings.

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