Asked by Michael McGuire on Apr 24, 2024
A tendency for higher stock prices for high dividend paying firms is a factor that favor a high dividend policy.
Stock Prices
The current market price of a company's shares, representing the valuation that the market assigns to a single share of the company's stock.
Dividend Policy
A company’s strategy or guidelines set for allocating a portion of its earnings back to its shareholders in the form of dividends.
- Understand the effects of dividend policy on stock prices.
Learning Objectives
- Understand the effects of dividend policy on stock prices.