EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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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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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

EBK CORPORATE FINANCE

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