JC Automobiles is a small auto parts manufacturing firm that has paid $1.00 in annual...
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Finance
JC Automobiles is a small auto parts manufacturing firm that has paid $1.00 in annual dividends each year for the past five years. It announces that dividends will increase to $1.25 next year. What would you expect the price reaction to be? Why? If your answer is different from the previous problem, explain the reasons for the difference
Would your answer be different if JC Automobiles were a large firm followed by thirty-five analysts? Why or why not?
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