Explore BrainMass

Explore BrainMass

    Dividend Policy

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 1, 2020, 8:03 pm ad1c9bdddf

    Solution Preview

    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 ...

    Solution Summary

    The solution explains the dividend policy in relation to risky companies.