Why are dividend increases typically good news for investors and dividend cuts bad news? Explain briefly.

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Why are dividend increases typically good news for investors and dividend cuts bad news? Explain briefly.
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...
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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