--%>

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 : Explain Legislative Information System

    Legislative Information System (LIS): An on-line system formed and employed by the Department of Finance to maintain existing information regarding all bills introduced in the Assembly and Senate for the current 2-year session, and fo

  • Q : How does preemptive right secure

    How does a preemptive right secure the interests of present stockholders? A preemptive right secure the interests of existing stockholders through giving them the chance to preempt other investors into the purchase of new shares. If these right

  • Q : Describe Reappropriation

    Reappropriation: The expansion of an appropriation’s accessibility for encumbrance and/or expenses beyond its set annihilation date and/or for a new point. Re-appropriations are usually authorized by statute for 1-year at a time however might be

  • Q : Explain financial markets Explain

    Explain financial markets? Why do they exist?In financial markets, financial securities are bought and sold. They exist chiefly to bring deficit economic units (those needing money) and surplus economic units (those have extra money) together.

  • Q : Define the term Baseline Adjustment or

    Define the term Baseline Adjustment or  Baseline Budget: Baseline Adjustment: Also termed to as Workload Budget Adjustment.

    Q : What is Cash Flow Statement What is

    What is Cash Flow Statement: It is a statement of cash receipts and disbursements for a particular time period.

  • Q : What can a financial institution do for

    What can a financial institution frequently do for a surplus economic unit which it would have complexity doing for itself if the surplus economic unit (SEU) were to deal directly along with a deficit economic unit (DEU)?Usually, Surplus economi

  • Q : Impact on India on Global Economic

    Explain the impact on India on Global Economic crisis ?

  • Q : Estimation of expected incremental cash

    How do we estimate expected incremental cash flows for proposed capital budgeting project? We estimate expected incremental cash flows for proposed project through estimating the changes in sales and expenses which are incremental to the project

  • Q : Describe benefits of the JIT inventory

    Describe the benefits of the JIT inventory control system? The just-in-time (JIT) inventory control system lowers inventory carrying costs & tends to raise quality.