The day of the announcement

Reference no: EM13769622

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: EM13769622

Questions Cloud

Create your own function that accepts one input parameter : create your own function that accepts one input parameter and returns a float number. You decide the theme.

Vandana shiva views of development-environmental systems : What are Vandana Shiva's views of development and progress as they relate to land use and control of environmental systems?

What is the difference between logistics and supply chain : Why is it no longer feasible/desirable to build buffers with inventory today? What is the difference between logistics and supply chain management? How can we create value for our enterprise by focusing on logistics and supply chain management?

What is the investment cost of the machine : A new machine can be purchased for $1,000,000. it will cost $65,000 to ship and $35,000 to modify the machine. A $30,000 recently completed feasibility study indicated that the firm can employ an existing factory owned by the firm, which would have..

The day of the announcement : 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 i..

Write a argumentative paper on fast food and sugar : Write a Argumentative paper on fast food and sugar.

Formulate the goal programming representation of the problem : A package express carrier is considering expanding the fleet of aircraft used to transport packages. Of primary importance is that there is a total of $350 million allocated for purchases. Two types of aircraft may be purchased - the C1A and the C1B.

Briefly describe the legislative efforts : Briefly describe the legislative efforts on each one, and whether they have been successful. Use both the book and online research to answer this question

Compare and contrast gangs and non-traditional gangs : Compare and contrast gangs and non-traditional gangs

User Account

All Pages