AFB, Inc. declared a dividend of $2 per share, which was an increase of 25% from

Question

AFB, Inc. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet AFB, Inc. stock declined by 3% the day of the announcement. DAS, Inc. declared a dividend of $2 per share, which was the same as the prior year, and its stock increased in value by 2% on the day of the announcement. These events could be most readily explained by the

Select one:

a. expectations theory.

c. information effect.

d. clientele effect.

2.) Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories?

Select one:

a. the expectations theory

b. the residual dividend theory

d. the information effect

Explanation / Answer

a.))expectations theory.

d.))the information effect

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.