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ppose a company is trying to decide whether to hcrease or decrease ils dividend. Which of the following is (are) correct regarting this decision? Choose
ppose a company is trying to decide whether to hcrease or decrease ils dividend. Which of the following is (are) correct regarting this decision? Choose the best anwwer. A. It doesn't matter whether a company increases or decreases its dividend because, acoording to the dividend-ditcount model, the benefi from the higher dividens in be oftiat by a low huhure growth rate 0 , so the stock price wil be the same either way. B. The company thould decrease it dividend if doing so will increase the current stock price. C. The corrpany should increase its dividend if the return on new irvestment epportunites is higher than the cost af capitat. D. The company should increase its dividend because, aceording to the dividend-discount model, doing so will ahways improve the share price. F. The compary should not increase dividends because companies should always reinvest as much as possble. F. All of these answers a:e correct, at least in most cases
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