MM show that in an idealized setting, firm value is not affected by payout policy. Yet we

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MM show that in an idealized setting, firm value is not affected by payout policy. Yet we observe that more mature firms regularly pay higher dividends than do younger ones. Is this purely happenstance, or is there a real-world violation of the MM assumptions that may explain this pattern?
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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