FUNDAMENTAL OF CORPORATE FINANCE
FUNDAMENTAL OF CORPORATE FINANCE
4th Edition
ISBN: 9781323942925
Author: Berk
Publisher: PEARSON
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Chapter 17, Problem 9CC
Summary Introduction

Dividend: The amount that shareholders receive in return of their investment is called as a dividend. The dividend is paid according to the number of share of each shareholder. Preference shareholder receives a fixed rate of dividend but equity shareholders receive dividend only when there is a profit in the company.

To determine:

The signals that a firm gives when it cuts dividend.

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