Question: Which statement is incorrect? Any change in the dividend policy of the firm leads to the immediate stock price reaction. When the firm starts paying

Which statement is incorrect? Any change in the dividend policy of the firm leads to the immediate stock price reaction. When the firm starts paying dividends, its stock price increases in response to that. Dividend policy is set by the managers of the firm rather than its owners. When the firm starts increases its current dividends, its stock price increases in response to that. Startups pay more dividends than mature firms to encourage shareholders to buy more of their stocks
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