Asked by Camryn Bergeron on Apr 25, 2024
All else the same, an investor is likely to prefer a firm with a high dividend payout if the firm has many positive NPV projects in which it could invest.
High Dividend Payout
A scenario where a company distributes a large portion of its earnings to its shareholders in the form of dividends.
Projects
Specific tasks or programs undertaken to meet particular goals, often requiring significant time, resources, or investment.
- Highlight components that dictate preferences for dividend policies in investors.
- Understand the information content effect of dividends and its impact on stock prices.
Learning Objectives
- Highlight components that dictate preferences for dividend policies in investors.
- Understand the information content effect of dividends and its impact on stock prices.