Quiz Ch 14 – T/F Bird-in-the-Hand Theory’s Implication on Dividend Yield and Growth
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: A consequence of the bird-in-the-hand theory of dividends is that if dividend yield decreases, it necessitates a growth increase surpassing the reduction in proportion to maintain a firm’s constant required return, assuming other factors remain unchanged.