--%>
Assignment Help - homework help

Increased common stock cash dividend signal to stockholders

Do you trust an increased common stock cash dividend can send any signal to the common stockholders? If so, what signal might it send?
An increase in cash dividends is frequently seen as a positive signal. A company would be unlikely to raise its dividend if it did not believe its future prospects were good adequate to sustain the higher level of dividends. It is because the market usually frowns upon a cut in dividends.

   Related Questions in Finance Basics

  • Q : Riskiness of portfolio with very low

    What happens to the riskiness of portfolio if assets along with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk based on the degree of correlation among the two variables in questi

    		•
  • Q : How the production of public goods will

    Normal 0 false false

    		•
  • Q : Excess reserves Normal 0 false false

    Normal 0 false false

  • Q : Explain Supplement-Schedule 7A

    Supplement (Schedule 7A): In such documents, for precedent year, authorized positions symbolize the number of real positions filled for that year. For present year, authorized positions comprise all regular ongoing positions accepted in the Budget Act

    		•
  • Q : Determine level of productivity in this

    Normal 0 false false

  • Q : Describe the sales forecasting procedure

    Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

    		•
  • Q : Explain regulations Regulations: It is

    Regulations: It is a rule, order, or standard of common application issued by a state agency to interpret, implement, or make specific law enforced or managed by it, or to govern its measures. With state government, the procedure of adopting or modify

    		•
  • Q : Describe the role of a broker in

    Describe the role of a broker within security transactions? How are brokers compensated?Brokers handle orders to purchase or sell securities. Brokers are agents who work in support of an investor. While investors call with an order, brokers work

    		•
  • Q : Rate of inflation Normal 0 false false

    Normal 0 false false

    		•
  • Q : Describe Treasury bill Describe

    Describe Treasury bill? How risky is it?Treasury bills are short term debt instruments issued through the U.S. Treasury which are sold at a discount and pay face value at maturity.  They are very close to risk-free as they are backed throug

    		•