Under the assumptions set out by Modigliani and Miller, is a firm with a low payout dividend

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Under the assumptions set out by Modigliani and Miller, is a firm with a low payout dividend stream that uses retentions to finance investment more or less viable than a high payout firm that issues new issues to finance investment? Do you think dividend policy is important in practice? Justify your answer using information you have read in this chapter.

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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