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: ]
Ask a question
Not a good answer? Get 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
Business and Money|No Subcategories|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
Business and Money|No Subcategories|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
Business and Money|No Subcategories|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
Business and Money|No Subcategories|Expert Answered
Asked 8/25/2012 7:30:55 PM
0 Answers/Comments
Home | Contact | Terms | Privacy | Social | ©2013 Purple Inc.
Ad
Popular Conversations
Solve the inequality 5x
Weegy: 5x User: Solve the inequality 5x Weegy: 5x User: Solve the inequality 12x Weegy: It will be c.x User: Solve the ...
4/23/2014 4:34:04 PM| 7 Answers
Solve for x. x - 8 = -20 -28 -12 12 28
Weegy: 6(x - 2) = 4, 6x - 12 = 4, 6x = 4 + 12, 6x = 16, x = 16/6, or 8/3 in simplest form. User: The sum of ...
4/23/2014 1:27:55 PM| 3 Answers
5x + 4y + 15 + 2x - 8y - 5=
Weegy: The answer for 5x - 4y = 12 is y = 1/4 (5 x-12). User: 8(5a - b) - 6(4b-4a)= Weegy: a^2 - 5a - 6 = (a + ...
4/23/2014 8:09:04 PM| 3 Answers
Which country is not a permanent member of the U.N. Security ...
Weegy: the country which is not a permanent member of the UN council is (c) China. User: Who holds veto power in the ...
4/23/2014 10:11:57 AM| 2 Answers
Zeller, Inc., has 50,000 shares of stock outstanding. Zeller declares ...
Weegy: Zeller, Inc., has 60,000 shares of stock outstanding. Zeller declares a dividend of $580,000. ...
4/23/2014 10:05:10 AM| 2 Answers
What is the European Union?
4/23/2014 11:36:33 AM| 2 Answers
The United States and its allies launched operation “Desert Storm” in ...
Weegy: The United States and its allies launched operation “Desert Storm” in response to Iraq’s invasion of KUWAIT in ...
4/23/2014 11:50:36 AM| 2 Answers
troupe
Weegy: Chorus can be defined as a group of persons who speak or sing in a given part or composition in drama or ...
4/23/2014 11:53:48 AM| 2 Answers
Weegy Stuff
S
L
P
C
L
P
C
Points 1846 [Total 7233]| Ratings 0| Comments 1846| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
Points 1807 [Total 9688]| Ratings 0| Comments 1807| Invitations 0|Online
S
1
L
C
L
Points 914 [Total 5717]| Ratings 4| Comments 874| Invitations 0|Offline
S
1
L
1
L
P
Points 581 [Total 7258]| Ratings 2| Comments 561| Invitations 0|Offline
S
L
Points 480 [Total 2927]| Ratings 2| Comments 450| Invitations 1|Offline
S
L
1
1
1
Points 316 [Total 3582]| Ratings 7| Comments 246| Invitations 0|Offline
S
R
Points 267 [Total 379]| Ratings 6| Comments 187| Invitations 2|Offline
S
Points 217 [Total 217]| Ratings 6| Comments 137| Invitations 2|Offline
S
Points 170 [Total 586]| Ratings 0| Comments 170| Invitations 0|Offline
S
1
Points 165 [Total 495]| Ratings 4| Comments 125| Invitations 0|Offline