A company

Date Dividends

2011 0.04

2012 0.04

2013 0.04

2014 0.04

2015 0.04

2016 0.04

2017 0.04

2018 0.04

B company

Date Dividends

2011 1

2012 1.15

2013 1.5

2014 1.75

2015 2.5

2016 2.6

2017 2.7

2018

1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain. 2. How do companies use dividend announcements as a signaling mechanism