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Author Question: When a company announces an increase in its dividend, then the stock price typically increases. ... (Read 67 times)

NguyenJ

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on: Apr 25, 2021
When a company announces an increase in its dividend, then the stock price typically increases. Which of the following is (are) a correct reason for the increase?

I.  The increase signals that management thinks that future earnings will be higher than the market previously estimated.
II.  The increase reduces free cash flow and so reduces managerial waste.
III.  Stockholders prefer companies with greater payouts.

◦ I only
◦ II only
◦ III only
◦ I and II
◦ II and III
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by NguyenJ on Apr 25, 2021

momo1250

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Only 39% of students answer this correctly


NguyenJ

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

mjenn52

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Reply 3 on: Yesterday
Excellent

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