Question: What is a possible reason why high dividend payments would cause a firm's stock price to increase? - Bc both dividends and capital gains result

What is a possible reason why high dividend payments would cause a firm's stock price to increase?

- Bc both dividends and capital gains result in similar increased value for investors

- Bc dividends are a more stable source of income than capital gains

- Bc dividend income is not tax deferrable like capital gains are

- all of the above

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!

Q:

A group of employees receiving sales training produced average monthly sales for the 3 months following the training of $20,500. A properly designed control group for the same period had average...

Q:

What is a possible reason why low dividend payments would cause a firm's stock price to increase? because both dividends and capital gains result in a similar increased value for investors because...

Q:

please answer questions 13, 14, 18, 27, 29, 32, 39 1) Marti is 31 years old and is saving for retirement. Which one of the following portfolio allocations might best suit her situation if she is...

Q:

I need help from a Financial expert who is very familiar with exchange rate exposure & payout policy.I will adjust the price as you suggest. For some reason I am not able to do it here. Please be...

Q:

Below is the assignment, attached in the excel file is actually all the answers, I need these transferred into my own excel file, answering all the questions below. Integrated mini-case: ?Working...

Q:

I need help on questions 12-15 in section 5. Could you also explain how you solved them 1 Sample Questions from Previous FIN 3310 Departmental Final Exams (Revised 2015) Printed below is a sampling...

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

Please help with the discussion below: ** Each of the 3 questions below only need to beabout two-threepara graphs but packed full of information, no fluff. **Attached below are a few readings from...

Q:

SOMEONE PLEASE HELP ME GIVE ALL THE ANSWERS!!!!! MY EXAM IS ON 13th MORNING! SO PLEASEEEEE!!!!! 2. An investment is expected to pay the following: C 1 = $2,300, C 2 = $2,600, C 3 = $2,900, and then...

Q:

1. A bank is paying interest at a 5% annual rate on deposits. If you invest 10,000 and the bank compounds interest daily (i.e., 365 times per year), which of the following shows how much you will...

Q:

The paper Less Air Pollution Leads to Rapid Reduction of Airway Inflammation and Improved Airway Function in Asthmatic Children (Pediatrics [2009]: 10511058) describes a study in which children with...

Q:

Math is used everyday especially in the realms of engineering and construction. Imagine that you have decided to build a swimming pool. You have some requirements for the pool, and need to know how...

Q:

(Appendix 4B) An example of a producing department is a. a materials storeroom. b. the maintenance department. c. engineering design. d. assembly. e. All of these.

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...