Question
DON'T USE EXCEL An announcement of a dividend increase normally increases the stock price by about 2%. But when ZZ co. announced a dividend decrease
DON'T USE EXCEL
An announcement of a dividend increase normally increases the stock price by about 2%. But when ZZ co. announced a dividend decrease of 50%, the stock price decreases by about 10%. (1) Explain why announcement of dividend increase is a good news. (2) Given the fact that dividend increase is a good news, explain how the dividend cut in ZZ co. can lead to a price increase.
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The Handbook For Investment Committee Members
Authors: Russell L. Olson
1st Edition
0471719781, 978-0471719786
