Why is an individual stockholder indifferent about whether the firm retains $1 of earnings or pays out

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Why is an individual stockholder indifferent about whether the firm retains $1 of earnings or pays out the $1 of earnings as a dividend, assuming that the firm and the stockholder maintain a constant debt-equity ratio and a constant proportional ownership position, respectively?
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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