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Asked by Miguel Angelo on May 22, 2024

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Extra cash dividend is sometimes undertaken by a firm that wishes to make its stock price more appealing to the average investor.

Extra Cash Dividend

A supplementary dividend paid to shareholders that is above the company's normal dividend level.

Stock Price

The cost of purchasing a single share of a particular stock, which can fluctuate based on market conditions.

Average Investor

A term referring to a typical or representative investor, often considered in discussions about investment strategies or market behaviors.

  • Appreciate the constituents that affect preferences on dividend policies among investment bodies.
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Claudia RamirezMay 25, 2024
Final Answer :
False
Explanation :
Extra cash dividends are typically distributed to return excess cash to shareholders and do not directly aim to make the stock price more appealing to the average investor. Stock price appeal is more often addressed through actions like stock splits.

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