Information effect-expectations theory-clientele effect

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Reference no: EM13937118

JBC Corp. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet JBC Corp. stock declined by 3% the day of the announcement. RBG Corp. declared a dividend of $2 per share, which was the same as the prior year, and its stock increased in value by 2% on the day of the announcement. These events could be most readily explained by the: a. information effect b. expectations theory c. clientele effect d. residual dividend theory

Reference no: EM13937118

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