Which of the following is true of a dividend payout? A) When a firm a

Which of the following is true of a dividend payout?

A) When a firm announces that it will increase its dividend, the share price usually decreases on that news.
B) Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.
C) When a firm pays out dividends the share price will fall.
D) Dividend payouts have no impact on the share price of a stock in an efficient market.

ANSWER

C