Company XYZ is expecting a large increase in earnings, beginning this year, because a new...
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Finance
Company XYZ is expecting a large increase in earnings, beginning this year, because a new production method that it developed is much more efficient than it had expected. If the company announces a big increase in its dividend, then the stock price is likely to _____________________ on the day it announces the new dividend, and _____________________ on the ex-dividend date.
Which combination should fill in the two blanks above?
A.
decrease; increase
B.
increase; decrease
C.
decrease; stay the same
D.
increase; stay the same
E.
F.
G.
stay the same; decrease
H.
All of these choices are equally likely
I.
stay the same; stay the same
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