Managers have more information about the company than shareholder. (Asymmetric information) This means they may need to
Fantastic news! We've Found the answer you've been seeking!
Question:
Managers have more information about the company than shareholder. (Asymmetric information) This means they may need to signal to investors through their payout policy. What information is signaled when a company:
- Increases their dividend payments
- Decreases their dividend payments
- Announces a share repurchase
Expert Answer:
Answer rating: 100% (QA)
Asymmetric information between managers and shareholders can lead to signaling through a companys payout policy Heres what information is signaled whe... View the full answer
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Ann Carter, Chief Financial Officer of Consolidated Electric Company (Con El), must make a recommendation to Con Els board of directors regarding the firms dividend policy. Con El owns two...
-
What is the effect of cultural commoditization and transformation on local traditions and customs? Give an example. Check Chapter 4 in the textbook for information on cultural commoditization and...
-
Soft Glow, Inc. manufactures light bulbs. Their purchasing policy requires that the purchasing agents place each quarter's purchasing requirements out for bid. This is because the Purchasing...
-
For a multiple regression, which statement is true? Why not the others? a. Evans' Rule suggests at least 10 observations for each predictor. b. The t calc in a test for significance of a binary...
-
Gate AB has length L, width b into the paper, is hinged at B, and has negligible weight. The liquid level h remains at the top of the gate for any angle θ. Find an analytic expression for the...
-
Refer to problem 6-29, concerning discounts on raw materials and purchased parts. As an alternative to ratio or difference estimation, the CPA is considering dollar unit difference estimation....
-
Three departmentsmilling (M), drilling (D), and sawing (S)are assigned to three work areas in Samuel Smiths machine shop in Baltimore. The number of work pieces moved per day and the distances...
-
You are required to help draft a Research Report on the analysis of the digital strategy of your training organisation. It is advisable to first examine 4 Examples of Successful Digital Strategy...
-
Specify the seq# and ack# of the following packets. Seq=150, SYN Seq = 300, ACK = Seq = Seq = A A/ 1 A/ A , ACK = ACK =
-
Think of a time when you had to make an ethical decision. Describe the context, the decision you made, and the reasons for making that decision at the time. From learning about King IV, GACP and ISO...
-
3. You are presented with the following information regarding Portfolios X, Y, and Z: a. b. Portfolio X Portfolio Y Portfolio Z E(r) 12% 8% 3% g .25 .18 .00 beta 1.6 0.8 0.0 Which of Portfolio X and...
-
Design a model with methods and procedures for analyzing diversity and how you would implement the results in a cultural diversity training program.
-
A wire is to be attached to support a telephone pole. Because of surrounding buildings, sidewalks, and roadways, the wire must be anchored exactly 8 feet from the base of the pole. Telephone company...
-
(a) Appraise whether the dividend valuation, FCFF discounted cash flow, or FCFE discounted cash flow method is the most appropriate valuation method to value to share price of the chosen company -...
-
Prepare a proforma invoice for a transaction between two imaginary parties based in any two countries, involving any goods of your choice. Your proforma invoice should include the following: The word...
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
Identify a job in which you were highly motivated or demotivated. What characteristics of the work, the people and/or the organisation made you feel this way?
-
Think of a really bad boss. Describe what made the boss so awful. Which employee needs were not satisfied by the boss's behaviour?
-
Understand the need to link remuneration and benefits policies to an organisation's strategic business objectives and identify the key objectives of employee remuneration and benefits?
Study smarter with the SolutionInn App