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7. Whenacompanyraises its dividend (orinitiates adividend when it was not payingoneso far), its stock price tends to increase. k. Give two possible explanations for this

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7. Whenacompanyraises its dividend (orinitiates adividend when it was not payingoneso far), its stock price tends to increase. k. Give two possible explanations for this phenomenon. 1. Doesthis increase occur when the dividendis announced, on thecum-dividend date, the ex-dividend date, the payment date, or another date? Explain briefly

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