When companies cut dividends, it is usually a bad sign for the stock. Bur apparently not at

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When companies cut dividends, it is usually a bad sign for the stock. Bur apparently not at Monsanto. Several years ago, the company cut its dividends and the stock price went up.
Required
Explain how a dividend cut could lead to increasing stock prices.

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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