The day of the announcement

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Reference no: EM13769622

JBC Corp declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet JBC Corp stock declined by 3% the day of the announcement. RBG Corp declared a dividend of $2 per share, which was the same as the prior year, and its stock increased in value by 2% on the day of the announcement. These events could be most readily explained by the:

a. information effect

b. expectations theory

c. clientele effect

d. residual dividend theory

Reference no: EM13769622

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