Question: An increase in flotation costs will most likely result in which of the following? a. smaller dividend payments so that external equity financing is needed

An increase in flotation costs will most likely result in which of the following? a. smaller dividend payments so that external equity financing is needed b. larger dividend payments so shareholders are able to earn their requested returns c. no charge in dividend policies because flotation costs are paid by purchases of common stock d. larger dividend payments to offset higher taxes paid by investors

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