Question and answer
Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1) the
clientele effect the residual dividend theory the information effect the expectations theory
the clientele effect the residual dividend theory is applicable here. A residual dividend policy is one where a company uses residual or leftover equity to fund dividend payments. [ Typically, this method of dividend payment creates volatility in the dividend payments that may be undesirable for some investors. Read more: ]
Get an answer
Ask Weegy or search for an answer now. (Free)
Original conversation
User: Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1) the clientele effect the residual dividend theory the information effect the expectations theory

Weegy: the clientele effect the residual dividend theory is applicable here. A residual dividend policy is one where a company uses residual or leftover equity to fund dividend payments. [ Typically, this method of dividend payment creates volatility in the dividend payments that may be undesirable for some investors. Read more: ]
piash|Points 2796|

User: Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1) the clientele effect the residual dividend theory the information effect the expectations theory

Weegy: the clientele effect the residual dividend theory is applicable here. A residual dividend policy is one where a company uses residual or leftover equity to fund dividend payments. [ Typically, this method of dividend payment creates volatility in the dividend payments that may be undesirable for some investors. Read more: ]
piash|Points 2796|

User: Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1) the clientele effect the residual dividend theory the information effect the expectations theory





Weegy: the residual dividend theory would be the correct answer. [www.transtutors.com/questions/tts-dividend-changes-may-be-used-by-management-as-a-credible-communication-tool-173796.htm] Residual Dividend Policy Steps: 1) Determine the optimal [ capital budget. 2) Determine the retained earnings that can be used to finance the capital budget. 3) Use retained earnings to supply as much of the equity investment in the capital budget as necessary. 4) Pay dividends only if there are left-over earnings. ]
Expert answered|piash|Points 2796|

Question
Asked 8/25/2012 7:47:56 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
A firm's optimal capital structure occurs where? (Points : 1) EPS are maximized, and WACC is minimized. Stock price is maximized, and EPS are maximized. Stock price is maximized, and WACC is maximized. WACC is minimized, and stock price is maximized.
Weegy: WACC is minimized, and stock price is maximized. The firm's optimal capital structure can be determined two ways: Minimizes WACC. Maximizes stock price. User: Benkart's Tire Store has fixed costs of $220,000. Tires sell for $95 each and have a unit variable cost of $45. What is Benkart's break-even point in units? (More)
Question
Expert Answered
Asked 8/25/2012 6:39:39 PM
0 Answers/Comments
A firm's optimal capital structure occurs where?
Weegy: Stock price is maximized, and WACC is maximized. (More)
Question
Expert Answered
Asked 8/25/2012 7:17:40 PM
0 Answers/Comments
A firm's optimal capital structure occurs where?
Weegy: Stock price is maximized, and WACC is maximized. User: A firm's optimal capital structure occurs where? Weegy: WACC is minimized, and stock price is maximized. The firm's optimal capital structure can be determined two ways: Minimizes WACC. Maximizes stock price. User: A firm's optimal capital structure occurs where? Weegy: WACC is minimized, and stock price is maximized. The firm's optimal capital structure can be determined two ... (More)
Question
Expert Answered
Asked 8/25/2012 7:22:28 PM
0 Answers/Comments
Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1) the clientele effect the residual dividend theory the information effect the expectations theory
Weegy: the clientele effect the residual dividend theory is applicable here. A residual dividend policy is one where a company uses residual or leftover equity to fund dividend payments. [ Typically, this method of dividend payment creates volatility in the dividend payments that may be undesirable for some investors. Read more: ] (More)
Question
Expert Answered
Asked 8/25/2012 7:30:55 PM
0 Answers/Comments
16,977,357 questions answered
Popular Conversations
Which composer drew heavily on Northern European mythology, including ...
Weegy: Richard Wagner is the composer who drew heavily on Northern European mythology, including many of the same ...
7/31/2014 12:20:08 PM| 4 Answers
What year did the United States enter World War I? A. 1917 ...
Weegy: The United States enter World War I in: 1917. User: The first oil well was drilled in what geographical ...
7/31/2014 6:18:32 AM| 2 Answers
18-7x=-20.5 what is the value of x
7/31/2014 8:22:22 AM| 2 Answers
That man is a famous hockey player. a. Action verb b. Linking verb
Weegy: A linking verb is a verb that connects the subject of a sentence to the complement. User: The winter air ...
7/31/2014 8:47:58 AM| 2 Answers
The harvesting of wheat in British Columbia is an example of ...
Weegy: The harvesting of wheat in British Columbia is an example of A. ecological imperialism. User: Which of the ...
7/31/2014 10:34:41 AM| 2 Answers
(5x)=150 User: 3x+6=90
Weegy: 3x = 18 x = 18/3 x = 6
7/31/2014 11:27:49 AM| 2 Answers
The speaker in Sonnet 73 is addressing his imminent death. User: ...
Weegy: In The Passionate Shepherd to His Love,? the shepherd offers the charms of b. lifelong love User: The ...
7/31/2014 12:19:19 PM| 2 Answers
25/6 User: 25869-4523
Weegy: 25869-4523 = 21346;
7/31/2014 12:32:48 PM| 2 Answers
Weegy Stuff
S
L
1
Points 126 [Total 4102]| Ratings 0| Comments 126| Invitations 0|Offline
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
P
C
Points 105 [Total 21705]| Ratings 0| Comments 105| Invitations 0|Offline
S
L
C
P
C
1
L
L
Points 78 [Total 13694]| Ratings 0| Comments 78| Invitations 0|Online
S
L
1
1
1
1
L
1
Points 49 [Total 7756]| Ratings 0| Comments 49| Invitations 0|Online
S
P
C
L
P
L
1
Points 44 [Total 5926]| Ratings 0| Comments 44| Invitations 0|Offline
S
1
L
Points 23 [Total 4587]| Ratings 0| Comments 23| Invitations 0|Online
S
Points 19 [Total 30]| Ratings 0| Comments 19| Invitations 0|Offline
S
R
R
L
R
R
Points 12 [Total 1233]| Ratings 0| Comments 12| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
P
C
Points 12 [Total 17583]| Ratings 0| Comments 12| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
P
C
Points 11 [Total 15038]| Ratings 0| Comments 11| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.