An Example Of Dividend Policy Irrelevance

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Title: An Example Of Dividend Policy Irrelevance
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Subject: Business
Date: January 17, 2008
Length: 2 / 411
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This wash effect holds for any dividend policy change if there are no personal taxes.
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An example provides insight into the dividend irrelevance proposition. Suppose that now is time 0, and one year from now is time 1. Carter Company just paid its time 0 dividend (assume dividends are paid once per year), and plans to publicly announce its dividend policy for the next year...
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Common topics in this essay:
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