The question as to whether dividend policy has an effect on share prices raises a question as

Question:

The question as to whether policy has an effect on share prices raises a question as to whether dividends paid out to stockholders are any more “ certain” than the expected future dividends the stockholders hope to receive from the retention of firm earnings. This is known as the “bird- in- the- hand’ theory of policy. Do you agree with this theory? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...