Chow, Alvin (2015) examined the Bird In Hand (BIH) and Dividend Irrelevance (DI) theories. In one hand,
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Chow, Alvin (2015) examined the Bird In Hand (BIH) and Dividend Irrelevance (DI) theories. In one hand, Bird In Hand (BIH) theory implies that having a cash payout appears to be better than the company retaining the earnings for growing the business. On the other hand, Dividend Irrelevance (DI) states that a company dividend policy has no impact on shareholder wealth. As per both debates in class and breakout session on dividends and the information provided in this article.
Answer the following questions:
Required:
- Does dividend policy matter considering cash and stock repurchase dividends? (
- Discuss at least two reasons of reverse stock splits.
- If you conclude that there is behavioral inclination in stock markets. Which theory you will follow to make an investment decision and why?
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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