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 57 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
Excellent

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
Asomatognosia typically involves damage to the right parietal lobe. Asomatognosia typically involves damage to the right parietal lobe.
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Helgeson Company has identified the following items for possible inclusion when taking a ... Helgeson Company has identified the following items for possible inclusion when taking a ...
Polyploidy increases fruit size Polyploidy increases fruit size
Video: Atrophy

For a complete list of videos, visit our video library