Increased common stock cash dividend signal to stock holder, Financial Management

Assignment Help:

Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send?

An enhance in cash dividends is often seen as a positive signal.  A company would be unlikely to enhance its dividend if it did not believe its future prospects were good sufficient to sustain the higher level of dividends.  This is for the reason that the market usually frowns upon a cut in dividends.

 

 

 


Related Discussions:- Increased common stock cash dividend signal to stock holder

Specialized stock indexes, Specialized Stock Indexes The most regularly...

Specialized Stock Indexes The most regularly quoted market indices are those that include the stocks of the largest listed companies on a nation's largest stock exchange. Examp

Auto loan-backed securities (albs), The issuers of ALBS are the finan...

The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti

Financial management, BigGardens Ltd (BigGardens) is a private company that...

BigGardens Ltd (BigGardens) is a private company that owns and operates a chain of garden centres in the Bristol area.  The company has expanded rapidly over recent years, opening

Mountain fresh growth, The Mountain Fresh Company had earnings per share (E...

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011.  The company pays out 30 percent of its earnings as dividends per share (DPS), and the

Explain the term- operating segments, Operating segments An operating s...

Operating segments An operating segment is a component of an organisation It engages in business activities from that it can earn revenues and incur expenses(this also c

Determine the example of future value of an annuity, Determine the example ...

Determine the example of Future Value of an Annuity An annual payment of 7000 $ is invested at 5% per annum compounded yearly. What will be the amount after 20 years? Solut

Role of government notes and bonds in finance national debt, Explain the vi...

Explain the vital role of government notes and bonds in the finance national debt. Government notes and bonds are issued within the USA by the US Treasury to finance national d

Explain the meaning of ledger, Question 1 Write short notes on following- ...

Question 1 Write short notes on following- Explain any five important functions of accounting What is Book-Keeping? Explain features of book-keeping Question 2 Ex

Define a preemptive right protect the interests, How does a preemptive righ...

How does a preemptive right protect the interests of existing stockholders? A preemptive right defends the interests of existing stockholders by providing them the opportunity to

What is sinking fund, What is Sinking Fund A provision which requires t...

What is Sinking Fund A provision which requires the corporation to set aside a fixed amount every year to help provide for orderly repayment of the debt issue.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd