Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. discuss whether dividends are relevant to investor

Discuss whether dividends are relevant to investors, in other words, does it make a difference to...

50.1K

Verified Solution

Question

Finance

Discuss whether dividends are relevant to investors, in otherwords, does it make a difference to an investor if a company paysout dividends or keeps the money and the value of the stock goes upby the same amount. Would it matter to you if you were an investor?Would it matter to the company?

Answer & Explanation Solved by verified expert
3.7 Ratings (642 Votes)
Recall MM hypothesis In the absence of taxes dividend and dividend policy is irrelevant Hence dividend doesnt create any additional value for the shareholders Reserves and surplus accumulation of companys earnings belong to the shareholders Dividends are paid out from that reserves and surplus which anyways belong to the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

You are a member of a group of researchers who study the reading ability of children....

Basic Math
1.2K views

A freshly brewed cup of coffee has temperature 95°C in a 20°C room. When its temperature...

Medical Sciences
1.2K views

What is the RMP? Depolarization: Which gates are open and which gates are closed? Repolarization: Which gates close...

Biology
1.2K views

Select the correct answer from each drop-down menu.Because vitamins carry out various functions in the...

Physics
1.2K views

An infinitely long uniform charge distribution of charge per unit length lies parallel to the...

Geometry
1.2K views

Find the perimeter of the triangle round to the nearest tenth 9 8 7 6...

Basic Math
1.2K views

Macmillan Learning 4 3 2 2 1 0 1 2 3 4 5 f x...

Basic Math
1.2K views

You know that this statement is true:If A is true then B is true.Which of...

Accounting
1.2K views

A company just starting business made the following purchases in August: August 1 August 12...

Accounting
1.2K views

Concord Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable...

Finance
1.2K views

Johnson Enterprises is evaluating the development of a new product. The new product would generate...

Finance
1.2K views

Beryl's Iced Tea currently rents a bottling machine for $50 000 per year, including all...