Question: QUESTION 2 7 Suppose a firm that bas been eaming $ 2 and paying a dividend of SL . 0 0 , or a 5

QUESTION 27
Suppose a firm that bas been eaming $2 and paying a dividend of SL.00, or a 50% dividend payout, announces that it is increasing the dividend to $1.50. The stock prioe then jumps from $20 to $30. Some people would argue that this is proof that investors prefer dividends to retained eamings. Miller and Modigliani would agree with this argument.
True
False
QUESTION 2 7 Suppose a firm that bas been eaming

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