Dividend Policy
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Dividend Policy. "Risky companies tend to leave lower target payout ratios and more gradual adjustment rates" What is it meant by this statement, explain why.
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Solution Summary
The solution explains the dividend policy in relation to risky companies.
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Companies do not usually want to change the dividends. Change in dividends have information content that the firm is doing bad (dividends reduce) or good (dividends increase). Risky ...
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