Green plantation corporation management

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Due to COVID-19 pandemic in 2020-2021, Green Plantation Corporation's management decides to cut its 2021 dividend following the company's sluggish sales performance. The dividend is cut from IDR500 per share to IDR200 per share.

Based on the company's decision, give two rationales or theories to support your analysis why this action may cause the stock price to decrease and two rationales or theories to explain why this action may cause the stock price to increase. Explain your reasoning.

Reference no: EM133121760

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