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
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 ways: Minimizes WACC. Maximizes stock price. 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? Weegy: the residual dividend theory (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
21,996,024 questions answered
Popular Conversations
Locate the verbal in the following sentence and identify its ...
Weegy: Check the turkey to see if it is done. Infinitive: To see; Use: Adverb. User: Locate the infinitive and ...
9/3/2015 4:37:24 PM| 4 Answers
Fishing is the leading industry in ...
9/3/2015 9:21:23 AM| 2 Answers
As a sales person for Tan's Bakery, Yolanda is paid a straight ...
Weegy: Yolanda's total gross pay is $12,741.3. It is where 5.3% of $12,100 is $641.3, then add it to $12,100, resulting ...
9/3/2015 11:43:02 AM| 2 Answers
4x3 – 3x2 + x + 3x3
Weegy: x=4
9/3/2015 12:54:05 PM| 2 Answers
Locate the complete adjective phrase and the noun modified. I heard ...
Weegy: Please indicate the sentence so I can give you the answer. Thanks! User: Locate the complete adjective phrase ...
9/3/2015 4:46:53 PM| 2 Answers
In a short story, any pronoun that indicates a person or thing spoken ...
Weegy: In a short story, any pronoun that indicates a person or thing spoken of is given in the third person. ] ...
9/3/2015 6:14:06 PM| 2 Answers
Which listening barrier is interrupting effective communication in ...
Weegy: Taylor: I just found out my dad got us tickets for the football game! Morgan: I don't watch professional sports ...
9/3/2015 8:42:13 PM| 2 Answers
Weegy Stuff
S
1
L
L
P
R
Points 118 [Total 9441]| Ratings 0| Comments 118| Invitations 0|Online
S
L
L
P
1
Points 102 [Total 9412]| Ratings 1| Comments 92| Invitations 0|Offline
S
Points 71 [Total 376]| Ratings 0| Comments 71| Invitations 0|Offline
S
Points 49 [Total 833]| Ratings 0| Comments 49| Invitations 0|Offline
S
Points 35 [Total 568]| Ratings 0| Comments 35| Invitations 0|Online
S
Points 23 [Total 28]| Ratings 1| Comments 3| Invitations 1|Offline
S
Points 20 [Total 208]| Ratings 0| Comments 20| Invitations 0|Offline
S
Points 17 [Total 17]| Ratings 0| Comments 7| Invitations 1|Offline
S
Points 10 [Total 10]| Ratings 0| Comments 0| Invitations 1|Offline
S
Points 9 [Total 233]| Ratings 0| Comments 9| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.