If instead of paying out 30% of earnings as dividends, KMS decides not to pay any dividend

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If instead of paying out 30% of earnings as dividends, KMS decides not to pay any dividend and instead retains all its 2019 earnings, how would its net new financing change?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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If instead of paying out 30% of earnings as dividends, KMS decides not to pay any dividend

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PLAN KMS currently pays out 30 of its net income as dividends so rather than retaining only 6643 it ...View the full answer

Fundamentals Of Corporate Finance

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