Green Mountain Producers Inc. is an oil drilling company. the company paid a dividend of $3.10 last year, and, in the past, its dividend has increased steadily by about 4% a year. Green Mountain just announced that its dividend will increase to $4.20 this year, and its share price rose from $38 per share to $40 per share immediately after the announcement.
Which of the following best explains why Green Mountain's stock price increased as it did?
The clientele effect
Dividend irrelevance theory
The signaling hypothesis
Which of the following statements is true?
Taxes on dividend income are paid in the year that they are received.
Taxes on dividend income s are paid when the stock is sold.
As a result, the U. S. tax code encourages many individual investors to prefer to receive
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of:.
the information content effect
the clientele effect
Answers: 2
Another question on Business
Business, 21.06.2019 23:30
Acompany is developing a new highperformance wax for cross country ski racing. in order to justify the price marketingwants, the wax needs to be very fast. specifically, the mean time to finish their standard test course should be less thanseconds for a former olympic champion. to test it, the champion will ski the course 8 times. the champion's times(selected at random) are 59.9 61.9 48.8 52.2 46.6 45.3 50.6 and 41.1 seconds to complete the test course. complete parts a and b below.a) should they market the wax? assume the assumptions and conditions for appropriate hypothesis testing are metfor the sample.assume=0.05. what are the null and alternative hypotheses? choose the correct answer below.b) suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion'saverage time to less thanseconds. what kind of error have they made? explain the impact to the company of such anerror.
Answers: 2
Business, 22.06.2019 01:30
In the fall, jay thompson decided to live in a university dormitory. he signed a dorm contract under which he was obligated to pay the room rent for the full college year. one clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. the dorm cost was $5000 for the two semesters, which jay had already paid a month after he moved into the dorm, he decided he would prefer to live in an apartment. that week, after some searching for a replacement to fulfill his dorm contract, jay had two offers. one student offered to move in immediately and to pay jay $300 per month for the eight remaining months of the school year. a second student offered to move in the second semester and pay $2500 to jay. jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. his share of the apartment rent and utilities will be $404 per month. assume each semester is 4.5 months long. disregard the small differences in the timing of the disbursements or receipts. what is the cost of the cheapest alternative?
Answers: 1
Business, 22.06.2019 10:50
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 3
Business, 23.06.2019 13:30
What is baruch shemtov's product, and how did he begin creating it? (site 1)
Answers: 3
You know the right answer?
Green Mountain Producers Inc. is an oil drilling company. the company paid a dividend of $3.10 last...
Questions
History, 09.10.2019 16:10
English, 09.10.2019 16:10
Social Studies, 09.10.2019 16:10
Biology, 09.10.2019 16:10
