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question 31 The majority of the company\'s clients are dividends-driven individu

ID: 2740592 • Letter: Q

Question

question 31

The majority of the company's clients are dividends-driven individuals. The company decides to change its dividend payout policy. What action of the company will most likely upset its investors and what will actually happen? decrease its dividends payout policy; the stock price will go down increase its dividends payout policy; the stock price will go down decrease its dividends payout policy; the stock price will go up decrease its dividends payout policy; the stock price will stay constant increase its dividends payout policy; the stock price will go up

Explanation / Answer

If the Company decreases its dividend payout policy, the stock price will go down. This action of the Company will most likely upset its investors.