Relevance to explaining overall corporate dividend behavior

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A) Are dividends relevant in determining share values? Identify one factor that indicates they are, and one that indicates they are not. Give your opinion on this question and why you hold it.

B) Select one of the following theories and provide an argument about why it might hold and why it might not. Once you have done this, give your personal opinion on its relevance to explaining overall corporate dividend behavior.

Residual theory of dividends

"Bird-in-the-hand" argument

Informational content of dividends

Investor preference for steady dividend payments

Reference no: EM131055131

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