Which of the following is most likely to have a negative impact on share price?
A)Omitting a share repurchase offer
B)Failure to increase the dividend at the same rate as previous years
C)Cutting the dividend per share in dollar terms
D)Reducing the dividend payout ratio

Question

Quizplus · Accepted Answer

Cutting the dividend per share in dollar terms can signal to investors that the company is experiencing financial difficulties or has a negative outlook, which can result in a decrease in share price. Omitting a share repurchase offer or reducing the dividend payout ratio may not necessarily have a negative impact on share price, while failure to increase the dividend at the same rate as previous years may result in a lesser increase in share price, but not necessarily a decrease.

Which of the Following Is Most Likely to Have a Negative