Hard Qs

1 cardby @nagong1

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How does the Price-to-Book ratio change when dividends are issued?
Not measured yet
- Dividend impact on book valueIssuing dividends reduces both Price (Equity Value) and Book Value (Net Assets) by the exact same dollar amount.●●●●○
- Dividend impact on high P/BIf P/B is greater than 1, issuing dividends increases the P/B ratio because Book Value decreases by a larger percentage than Price.●●●●●
- Dividend impact on low P/BIf P/B is less than 1, issuing dividends decreases the P/B ratio.●●●●○
- Dividend impact on neutral P/BIf P/B equals 1, issuing dividends leaves the P/B ratio unchanged.●●●○○