3. (a). One of the reasons why firms pay dividends is that dividends payments can be a signal to the market Explain

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach
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3. (a). One of the reasons why firms pay dividends is that dividends payments can be a signal to
the market. Explain.
Transcribed Image Text:3. (a). One of the reasons why firms pay dividends is that dividends payments can be a signal to the market. Explain.
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