Suppose We Lived in a Different World, One in Which

question 107

Essay

Suppose we lived in a different world, one in which NO corporations in Canada currently pay
dividends. Do you think that a renegade firm in this world could increase its value by initiating a
dividend payment, thereby making itself different from all the rest? Explain.

---

Definitions:

Normative Statements

Assertions about how the world ought to be, involving opinions and subjective judgements.

Rational Choice

A theory assuming individuals use logical calculations to make prudent decisions that provide them with the greatest benefit or satisfaction.

Facts

Data or information based on real occurrences or truths used for analysis, decision-making, or proving arguments.

Theories

Systematic ideas or principles formulated to explain phenomena, provide understanding, and predict future occurrences.