Which is the best explanation of how dividends could convey information to investors that could affect the value of a firm? A. Promises to pay dividends limit the ability of managers to accumulate too much cash and to make unwise investments with that cash. B. Investors are skeptical when managers claim that prospects for the firm are bright, but by committing to paying a dividend, managers are adding credibility to their statements about the firm's future. C. Dividends are a more tax efficient way to generate returns for shareholders. D. By paying dividends consistently, investors will come to see dividend payments as less risky than capital gains. Give typing answer with explanation and conclusion
Which is the best explanation of how dividends could convey information to investors that could affect the value of a firm?
A. Promises to pay dividends limit the ability of managers to accumulate too much cash and to make unwise investments with that cash.
B. Investors are skeptical when managers claim that prospects for the firm are bright, but by committing to paying a dividend, managers are adding credibility to their statements about the firm's future.
C. Dividends are a more tax efficient way to generate returns for shareholders.
D. By paying dividends consistently, investors will come to see dividend payments as less risky than
Give typing answer with explanation and conclusion
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