3. Why is an individual stockholder indifferent between the firm's retaining $1 of earnings and its paying
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3. Why is an individual stockholder indifferent between the firm's retaining $1 of earnings and its paying out the $1 of earnings as a dividend, assuming that the firm and the stockholder maintain a constant debt-equity ratio and a constant proportional ownership position, respectively?
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Related Book For 
Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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