Feb 2021. Facebook is a publicly- listed, hi-tech social-media company that does not pay a...
60.1K
Verified Solution
Link Copied!
Question
Finance
- Feb 2021. Facebook is a publicly- listed, hi-tech social-media company that does not pay a cash dividend. Facebook has a good growth record, and the stock has a $250 per share price.
Suppose, in January 2022, Facebook announces that it will begin to pay a $1.50 per share quarterly cash dividend (i.e., $6 per year) in March 2022. The prospective 3.4% yield is above-average for US stocks.
Management states that Facebook intends to increase the dividend on a regular basis.
Suggest three (3) possible reasons for why Facebook management changed the dividend policy.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.