In the context of imperfect and asymmetric information, how does the stock market react to the signal of a cut in dividend by a company?
| A. | The market sells, share price is lowered |
| B. | The market buys, share price is raised. |
| C. | The market does not react, price remains the same. |
| D. | None of the above. |
Answer : D Explanation : MARIAM KHALID said: (1:42pm on Monday 23rd October 2017)
WHEN COMPANY PAY LESS DIVIDEND ITS MEAN THEY WOULD DO MORE INVESTMENT INTERNALLY MAKING ROOTS STRONG MARKET PRICE SHOULD HIGH DEMAND INCREASE.
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
