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IgorLugansk [536]
3 years ago
6

Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock p

rice. The theory of explains this phenomenon.
Business
1 answer:
alina1380 [7]3 years ago
7 0

Answer:

The theory which explains the phenomenon described in the question is referred to as "Dividend Signaling".

Explanation:

When a company announces that is will be paying dividends, stock market players percieve this as an indication of :

  1. Strenght
  2. Performance and
  3. Profitability.

Hence investors will find it more attractive to purchase such a stock.

Cheers!

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If there r 15 dollers on a table 5 people grab 3 how many are left
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The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of $365,000, and a profit margin of 5.9 per
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Answer:

7.1%

Explanation:

Purple martin has an annual sales of $687,400

The total debt is $210,000

Total equity is $365,000

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= 0.059

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