Bruker Corporation today announced that its Board of Directors has approved the

Question

Bruker Corporation today announced that its Board of Directors has approved the initiation of a dividend policy under which the Company will target a cash dividend to the Company’s stockholders in the amount of $0.16 per share per annum, payable in equal quarterly installments. a. Based on M&M Perfect Capital Markets Dividend Theory, the stock price will probably fall by $0.16 on the day the stock goes ex-dividend. b. Based on M&M Perfect Capital Markets Dividend Theory, the firm is paying the dividend because it does not have positive NPV projects in which to invest. c. Based on M&M with Personal Taxes Dividend Theory, the stock price will probably fall on the day the dividend is announced. d. Based on the Bird in Hand Dividend Theory, the stock price will probably rise on the day the dividend is announced. e. All of the above are true. f. None of the above are true.

Explanation / Answer

e. All of the above are true

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