Which of the following statements is true? Increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources. Increasing dividends will always increase the stock price. Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.
Which of the following statements is true? Increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources. Increasing dividends will always increase the stock price. Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 37P
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Which of the following statements is true?
- Increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources.
- Increasing dividends will always increase the stock price.
- Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.
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