--%>

Increased common stock cash dividend signal to stockholders

Do you trust an increased common stock cash dividend can send any signal to the common stockholders? If so, what signal might it send?
An increase in cash dividends is frequently seen as a positive signal. A company would be unlikely to raise its dividend if it did not believe its future prospects were good adequate to sustain the higher level of dividends. It is because the market usually frowns upon a cut in dividends.

   Related Questions in Finance Basics

  • Q : Equilibrium price level and level of

    Normal 0 false false

  • Q : Market share of large bank holding

    Have the large bank holding companies enhanced their market share at the cost of smaller institutions?No. A study conducted through the Federal Reserve Bank of New York reveals that the increase in the concentration of assets is primarily becaus

  • Q : Changes in equilibrium GDP caused by

    Normal 0 false false

  • Q : What is Department Department: The

    Department: The governmental organization, generally belonging to the third level of the state organizational hierarchy as stated in the Uniform Codes Manual.

  • Q : Describe Schedule 7A Schedule 7A : The

    Schedule 7A: The summary version of the State Controller’s Office detailed Schedule 8 position register for each department. The information replicated in this schedule is the base for the “Salaries and Wages Supplement” exhibited on

  • Q : Why do businesses spend efforts to

    Why do businesses spend effort, time and money to generate forecasts?  Describe.Businesses succeed or fail based on how well prepared they are to deal along with the situations they confront in the future. Hence they expend considerable sum

  • Q : Problem of time lags in enacting and

    Normal 0 false false

  • Q : Domestic supply and demand diagram

    Normal 0 false false

  • Q : What is Operating Expenses and Equipment

    Operating Expenses and Equipment (OE&E): This is a class of a support appropriation which comprises objects of expenditure like general expenses, communication, printing, travel, data processing, tools, and accessories for the equipment.

  • Q : Midterm Exam for FIN 6000 Please

    Please complete the midterm exam independently.  Don't discuss it with other students in the class.  Please email me if you have any clarifying questions.  <