A firm can deliver a negative signal to stockholders by increasing the level of dividends or by

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A firm can deliver a negative signal to stockholders by increasing the level of dividends or by reducing the level of dividends. Explain why this is true.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:19 AM

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A firm can deliver a negative signal to stockholders by increasing the level of dividends or by

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When a firm reduces its dividend the firm is telling the market that it does not have sufficient ...View the full answer

Fundamentals of corporate finance

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