A business has 1 million at its disposal and managers feel that this could either be invested
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A business has £1 million at its disposal and managers feel that this could either be invested in new production facilities or be paid to shareholders as a dividend. What does the separation theorem suggest that the business should do? Can the business both pay the dividend and make the investment? Explain.
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The separation theorem says that the investment should be undertaken if it generates wealth ...View the full answer
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