Define each of the following terms:a. Target payout ratio; optimal dividend policyb. Dividend irrelevance theory; bird-in-the-hand fallacyc. Information content (signaling) hypothesis; clienteles; clientele effectd. Catering theory; residual dividend modele. Low-regular-dividend-plus-extrasf. Declaration date; holder-of-record date; ex-dividend date; payment dateg. Dividend reinvestment plan (DRIP)h. Stock split; stock dividendi. Stock repurchase

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Define each of the following terms:
a. Target payout ratio; optimal dividend policy
b. Dividend irrelevance theory; bird-in-the-hand fallacy
c. Information content (signaling) hypothesis; clienteles; clientele effect
d. Catering theory; residual dividend model
e. Low-regular-dividend-plus-extras
f. Declaration date; holder-of-record date; ex-dividend date; payment date
g. Dividend reinvestment plan (DRIP)
h. Stock split; stock dividend
i. Stock repurchase

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