Question: Decisions made by managers can often send the market a 'signal'. Explain what is meant by 'signalling effects', and state what gives rise to their

Decisions made by managers can often send the market a 'signal'.

Decisions made by managers can often send the market a 'signal'. Explain what is meant by 'signalling effects', and state what gives rise to their existence. By considering management decisions relating to, in turn, (a) raising funds, (b) returning cash to shareholders, and (c) acquisition financing, discuss in detail the various information managers could signal with their actions. (50 marks)

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