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alireads alireads
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2 months ago
Montreal Trust Corp. is facing reduced earnings. Its entire industry has been facing declining demand due to a severe recession; however, its share price has suffered more than the share price of its competitors. The market believes that Montreat Trust is fundamentally weaker than its competitors. Montreal Trust's CEO has decided to prop up the share price by increasing its dividend. He believes that, according to the dividend discount model (DDM), if Montreal Trust increases its dividend, then its stock price will rise. Why won't this work?
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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zexman911zexman911
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alireads Author
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2 months ago
Thank you, thank you, thank you!
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This site is awesome
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Smart ... Thanks!
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