Question: Question #1 (Dividend Preference Theory): On September 18, 2018, Microsoft Corp. on Tuesday announced that its board of directors declared a quarterly dividend of $0.46

Question #1 (Dividend Preference Theory):

On September 18, 2018, Microsoft Corp. on Tuesday announced that its board of directors declared a quarterly dividend of $0.46 per share, reflecting a 4 cent or 9.5 percent increase over the previous quarters dividend.

Get the closing price for Microsoft stock for Monday, Sep 17, 2018 and Tuesday, Sep 18, 2018.

Assuming the price movement is completely attributable to the dividend increase announcement, how do you explain the change in the price? Support your explanation using the Dividend Preference Theory.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The first image is the original question, the rest are the answer choices for each box. Question 4 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a...

Question 4 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase over the...

The first image is the original question, the other is the answer choices for the boxes. Question 3 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a...

Question 4 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase over the...

Question 3 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase over the...

Shopify sold 7.7m shares of no par common stock during its IPO for $28/share. The journal entry to record the sale is: DR Cash $215.6m CR [Select] D Question 3 1.5 pts On September 18th, 2019...

Help Save ter 18 3 Following is a recent Microsoft press release: REDMOND, Wash.--Nov. 29, 2017 - Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of...

i need help with breief excrise 18-6 i don't where tbose numbers came from please explain please explain how he got the anwsers with formulas The shareholders' equity of MLS Enterprises includes $200...

REDMOND, Wash., Sept. 18, 2019 /PRNewswire/ -- Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase...

Following is a recent Microsoft press release: REDMOND, Wash.Nov. 29, 2017 Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.42 per share. The...

10) The average IQ of 10 students is 100 with standard deviation of 18. The range of usual IQ scores would be: a) b) c) (83, 127) d) (46, 154) (64, 136) (82, 118)

Thirty years ago, Jack Houston and his wife, Trinity, established The Edge Car Wash Inc. on 20 acres of worthless land on the outskirts of Amarillo, Texas. They would have never imagined the urban...

nvestors often base their valuation off of simillar stage companies in the region, adjusted for certain factorn wach as the team and size of the potential market. What valuation method is this? VC...

30f15 ( > -/7 ;= View Policies Current Attempt in Progress A skydiver weighing 210 Ibf (including equipment) falls vertically downward from an altitude of 4000 ft and opens the parachute after 12 s...

The main office sent the invoice to Mr. and Mrs. Litvak on December 5.

The company settled the companys accounts before the end of the year.

The sales staff is preparing guidelines for (their, its) clients.