Dividend Policy a) The information content of dividend announcement suggests that dividend increases signal positive...
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Finance
Dividend Policy
a) The information content of dividend announcement suggests that dividend increases signal positive information about the firm. However, when Microsoft Corp paid its first dividend, its share price fell. Give two reasons for the stock market reaction to Microsofts first dividend announcement.
b) Why would you expect start-up firms or high growth firms to pay little or no dividends?
c) Explain why share repurchases announcements usually elicit a positive market reaction?
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