Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 17.6, Problem 1CC
Summary Introduction

To discuss: The signal where a firm gets when it cuts the dividends.

Introduction:

The increase or decrease in dividend payouts are determined by the theory called dividend signaling.

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Students have asked these similar questions
How does the market react to unexpected dividend changes? What does this tell us about dividendpolicy? How is it possible that dividends are so important, but at the same time, dividend policy isirrelevant?
How had dividend policy been used by firms as a “signal”. Why is it necessary for firms to send such signals?
What are the factors favoring a high-dividend policy?

Chapter 17 Solutions

Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License