Question
A corporation has been paying $9 per share in dividends each quarter since 2008. Due to Covid 19, the cash flows of the company decreased
A corporation has been paying $9 per share in dividends each quarter since 2008. Due to Covid 19, the cash flows of the company decreased significantly and the companys board of directors decided that they cannot pay $9 per share dividends going forward. What will happen to the price of the companys stock as a result of this decision? Why? Please explain.
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The Compensation Committee Handbook
Authors: James F. Reda, Stewart Reifler, Michael L. Stevens
4th Edition
1118370619, 978-1118370612
