Dividend Policy Assignment
February 19th, 2020
Which of the following statements concerning dividend policy is true?
|1.||Unexpected dividend increase announcements are usually perceived as positive signals because they indicate an expected increase in future earnings of the firm.|
|2.||A constant payout ratio policy enables stockholders to accurately predict future dividends.|
|3.||Since there is no evidence that one investor group is better than another, firms should change dividend policies frequently with no adverse impact stock price.|
|4.||Firms with stable earnings, such as utilities, tend to have a low dividend payout ratio.|
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