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Calculate the excess: (ii) - (iii) SFC company Final dividend change 14.00-13.00 Three days return- Three days Market return=7.14%-0.84%=6.3% Two...
iv. Calculate the excess: (ii) - (iii)
SFC company
Final dividend change 14.00-13.00=1.00
Three days return- Three days Market return=7.14%-0.84%=6.3%
Two days return- Two days Market return=10.13%-0.40%=9.73%
v. Check the results for any other two students in your tutorial class and report that result in your assignment 2
SNL company
Final dividend change=3-4.25=-1.25
Three days return excess: -1.21%+1.21%=0
Two days return excess: -1.21%-0=-1.21%
OGC
final dividend=1-2=-1
three days return excess= -6.02% -2.39% = -8.41%
two days return excess= - -7.47% - 0.19% = -7.66%
vi. Discuss the relevant theory (Information content (signalling) hypothesis,Free cash flow hypothesis ,Clientele effect)with the findings in (iv) and (v).
