How a dividend cut could lead to increasing stock prices

Assignment Help Finance Basics

Reference no: EM131427291

When companies cut dividends, it is usually a bad sign for the stock. But apparently not at Monsanto. Several years ago, the company cut its dividend and the stock price went up.

REQUIRED:

Explain how a dividend cut could lead to increasing stock prices.

Reference no: EM131427291

Questions Cloud

What are the key leadership competencies that will be needed : B6027.51- What are the key leadership competencies that will be needed in leaders by 2020? Why are they important? What are the most significant leadership trends that require a change in leadership approaches by 2020?

How many shares of stock were outstanding after the dividend : Does a stock dividend actually represent an economic exchange between a corporation and its shareholders? Why or why not?

What would you modify or improve to make a positive change : Imagine you are a policymaker for your city or town. Based on what you know and what you have learned in this course, what would you modify or improve to make a positive change in the life of a vulnerable group we have not covered in class?

The pollsters predictions and the outcomes of the elections : Is there a strong association between the pollsters predictions and the outcomes of the elections? Test an appropriate hypothesis and state your conclusions.

How a dividend cut could lead to increasing stock prices : When companies cut dividends, it is usually a bad sign for the stock. But apparently not at Monsanto. Several years ago, the company cut its dividend and the stock price went u

What leadership actions should the organization take : B6027.52- What leadership actions should the organization take? What competencies will be needed? What does the organization need to do to be prepared?

What happens when socialization does not take place : What happens when socialization does not take place? Why can't we conduct experiments to determine this? Nature sets limits on our potential. What is the importance of nurture?We say that Emile Durkheim's suicide study in France was the first major ..

Describe some other uses for a company’s cash : Describe some other uses for a company's cash. How could these uses benefit shareholders more than a stock repurchase?

Analyze the supply chain for your identified company : B6029.51- Analyze the supply chain for your identified company by explaining the following key elements of the supply chain: Identify key inputs, including less tangible assets, such as human resources and information.

User Account

All Pages