What typically happens to a firm’s value when it increases its dividend
What typically happens to a firm’s value when it increases its dividend? What would you expect to happen for a high-tech firm such as Microsoft?
How do the high amounts of executive stock options often granted by high-tech firms complicate the dividend policy decision for these firms?
……………………………….Answer preview……………………………………
An increase in a firm’s dividend enhances the value of a firm in several ways. Firstly, it increases the valuation of the firm as it attracts more investors that are keen on getting dividend earnings. Retirees and other people on fixed income have dividend-paying portfolios and rely on dividend payment for a living………………………………….
APA
320 words
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