managerial actions affecting firm value
Essay specific features
October 26, 2014
No of pages / words:
3 / 678
Rating of current essay:
An increase in ordinary dividends by management is a sign of managerial optimism about the future.This has a two fold effect; firstly, by the dividend discounting model of valuing shares, the share values rise and in concert, the firm's value. Secondly, there will be a surge in the market to take up these shares with positive prospects...
displayed 300 characters
Order custom writing paper now!
- Your research paper is written
by certified writers
- Your requirements and targets are
- You are able to control the progress
of your writing assignment
- You get a chance to become an
Get a price guote
Market economics indicates their value will increase as demand outstrips supply.
The reverse applies when management decides to cut dividends due to pessimistic views on future performance; an initial drop in share value (and hence company value) via the discounting method, then, would lead to a further market downfall due to supply outstripping demand...
displayed next 300 characters
General issues of this essay:
2 pages, 407 words
1 pages, 255 words
3 pages, 678 words
2 pages, 532 words
3 pages, 671 words
2 pages, 354 words
2 pages, 403 words