Discuss (1) The information content, or signaling, hypothesis; (2) The clientele effect; and (3) Their effects on

Question:

Discuss
(1) The information content, or signaling, hypothesis;
(2) The clientele effect; and
(3) Their effects on policy.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...