Why, in practice, would borrowing by the business to raise cash to pay a dividend not be

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Why, in practice, would borrowing by the business to raise cash to pay a dividend not be economically equivalent to borrowing by the individual shareholders to provide themselves with cash?

(Note that the answer to this question is not really provided in the chapter. However, a combination of background knowledge and common sense should enable you to come up with some relevant points.)

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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