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Even if a stock split has no information content, and even if the dividend
Even if a stock split has no information content, and even if the dividend per share adjusted for the split . If the information content, or signaling, hypothesis is correct, then changes in dividend policy can have an important effect on the firm- value and capital costs. a. True b. False . If management wants to maximize its stock price, and if it believes that the dividend irrelevance theory is correct, then it must adhere to the residual distribution policy. a. True b. False . If the shape of the curve depicting a firm's WACC versus its debt ratio is more like a sharp "V", as opposed to a shallow "U", it will be easier for the firm to maintain a steady dividend in the face of varying investment opportunities or earnings from year to year. a. True b. False . Even if a stock split has no information content, and even if the dividend per share adjusted for the split is not increased, there can still be a real benefit (i.e., a higher value for shareholders) from such a split, but any such benefit is probably small. a. True b. False Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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04 May 2016
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Even if a stock split has no information content, and even if the dividend per share adjusted for the split
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