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Business, 24.12.2019 18:31 bnnn

Assume that firm has a stead record of paying stable dividend for years. market analysts had expected management to increase the dividend by 7.5% in the latest quarter. however, management announced a 15% increase in the current year's dividend. the market value of the stock rose 20% on the day of the announcement. which of the following would best explain the stock market's reaction to the announcement? a. expectations theoryb. dividend irrelevance theoryc. residual dividend theoryd. agency theory

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