The share price of PUBG Bhd. increased 10% right after the company declared the highest dividend payment in its history. PUBG Bhd. did not increase its dividend payout ratio, the highest dividend payment was declared due to the better expectation on its future profitability.” Discuss ONE (1) dividend theory that supports the above statement.

The share price of PUBG Bhd. increased 10% right after the company declared the highest dividend payment in its history. PUBG Bhd. did not increase its dividend payout ratio, the highest dividend payment was declared due to the better expectation on its future profitability.” Discuss ONE (1) dividend theory that supports the above statement.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 37P

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