9. Information content of dividends (S15.1) Generous dividend payouts and high priceearnings multiples are correlated positively. Does

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9. Information content of dividends (S15.1) Generous dividend payouts and high price–earnings multiples are correlated positively. Does this imply that paying out cash as dividends instead of repurchases increases share price? (Hint: Could the level of dividends be telling investors something about long-run earnings?)

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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