This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When a company announces an increase in its dividend, then the stock price typically increases. ... (Read 23 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by NguyenJ on Apr 25, 2021

momo1250

  • Sr. Member
  • ****
  • Posts: 338
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.
Answer Preview
Only 39% of students answer this correctly


NguyenJ

  • Member
  • Posts: 516
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Does Intelligence Increase with Brain Size? Does Intelligence Increase with Brain Size?
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Factors that Increase Cardiac Output Factors that Increase Cardiac Output
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Polyploidy increases fruit size Polyploidy increases fruit size
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library