You are the chief fi nancial offi cer (CFO) of a large publicly traded company. You would

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You are the chief fi nancial offi cer (CFO) of a large publicly traded company. You would like to convey positive information about the fi rm to the market. If you agree with the conclusions from the Lintner study, will you keep paying your currently high dividend or raise that dividend by a small amount? Explain.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

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

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