–Â Â Â Â Â Â Â Â Â It is in the interests of both managers and shareholders to have share prices reflect new information (good or bad) as quickly as possible.
–Â Â Â Â Â Â Â Â Â Alterations in dividend policy are a subtle way to communicate this information.
–Â Â Â Â Â Â Â Â Â In order to be truly effective though, dividend payout must be relatively smooth over time.
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