increase to $2.50 this year, and its share price rose from $30 per share to $33
ID: 2658301 • Letter: I
Question
increase to $2.50 this year, and its share price rose from $30 per share to $33 per share immediately after the which of the following best explains why Green Mountain's stock price increased as it did? O The cientele effect O The signaling hypothesis O Dividend irrelevance theory Modigliani and Miller argued that each shareholder can construct his or her own dividend policy. This statement is: O True O False Modigliani and Miller also pointed out that many institutional investors do not pay taxes and can buy and sell stocks with very low transaction costs. For these investors, dividend policy is relevant than it is for an individua investor Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an ilustration of: O The information content effect O The clientele effect Capyright NoticesTers of Use Prvacy Notice Security Notice 0Explanation / Answer
1. B Signalling theory
2. True
3. Less
4. Dividend Signallinf theory.
5.B. Clientele effect.
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