Large cash dividend to shareholders


Assume that a company announces an unexpectedly large cash dividend to its shareholders. In an efficient market without information leakage, one might expect:

a. An abnormal price change at the announcement.

b. An abnormal price increase before the announcement.

c. An abnormal price decrease after the announcement.

d. No abnormal price change before or after the announcement.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Large cash dividend to shareholders
Reference No:- TGS0679007

Now Priced at $5 (50% Discount)

Recommended (95%)

Rated (4.7/5)