19.15. Divided Industries recently announced a substantial increase in its dividend payout. Stockholders complained because the increased

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19.15. Divided Industries recently announced a substantial increase in its dividend payout.

Stockholders complained because the increased dividend would place an added tax burden on them. Subsequent to the announcement, however, the stock price of Divided Industries increased 10 percent. Does this stock price increase indicate that the market viewed the dividend increase as a good decision?

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Financial Markets And Corporate Strategy

ISBN: 9780071157612

2nd Edition

Authors: Mark Grinblatt, Sheridan Titman

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