20.20: Government Properties Income
20.22: It would not change value of shares because it would not be good to sell your stock at $9 when it is worth $10
20.24:If the firm increased its dividend payouts, its financial distress costs would go up. Agency or signaling costs would go down. Therefore, you do not know what the net change in value is until you investigated all these capital-structure relevant factors.
20.26:a) Dividend smoothing— would matter more to firms that have never paid dividends before, and now informally committed themselves to a continued program.
b) Executive Stock Options—matters in cases in which managers have a lot of options, such as high-tech firms.
c)Executive Ownership—would matter in firms in which executives already hold a lot of shares, so that this could push their holdings into regions that matter.
d) Investor preferences—firms in Florida, where investors care to receive dividends for behavioral reasons.
e) Exclusion clauses—firms which would likely make institutional portfolios if it were not for the dividends, such as large Fortune-100 firms w/o dividends (would matter less for tiny firms, which would not be held anyway).
20.28: An unusual total return reaction should occur on the announcement day, not on the ex-day. The capital gain change itself should be larger and should occur between the cum-and the ex-date.
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