Question: Generally, a company will only pay dividends if it makes a profit, and high-growth companies should give priority to expansion and investment. However, there are
Generally, a company will only pay dividends if it makes a profit, and high-growth companies should give priority to expansion and investment. However, there are many strange phenomena in the capital market. Some companies will borrow money to pay dividends to shareholders. Some high-growth companies that urgently need capital have been paying dividends. Do you think these phenomena are reasonable? What are the possible reasons behind them?
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