In which stage of the dividend life cycle, informational asymmetry is moderate?DeclineMaturityRapid growthInfancy

In the context of the dividend life cycle, informational asymmetry refers to the disparity in the information available to different parties, such as company management versus investors. Let's analyze the stages:

1. Infancy: This stage typically has high informational asymmetry as new companies often lack a track record, making it difficult for investors to gauge performance and risks.

2. Rapid Growth: Companies in this stage may experience moderate asymmetry since their performance can vary greatly, and while some information becomes available, there are still uncertainties about future growth.

3. Maturity: In this stage, companies are well-established, and financial performance becomes stable. Informational asymmetry is usually low because extensive data and historical performance insights are accessible.

4. Decline: This stage may see increased asymmetry again as companies may not disclose negative information readily or may struggle in transparency as they face financial difficulties.

Based on this analysis, the stage of moderate informational asymmetry is likely the Rapid Growth stage. During this phase, while some information is being shared, uncertainties and variabilities in performance create a moderate level of asymmetry compared to the other stages.