Question: A commentator on a financial talk show on TV says that On average, firms pay out too little to stockholders. This is why stock prices

A commentator on a financial talk show on TV says that “On average, firms pay out too little to stockholders. This is why stock prices go up with dividend increases and down with dividend decreases. ” Is the commentator right?

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No It is true that stock prices do tend to increase with dividend increases and to decrease with div... View full answer

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