Dividends and firm value: You have just encountered two identical firms with identical investment opportunities, as well

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Dividends and firm value: You have just encountered two identical firms with identical investment opportunities, as well as the ability to fund these opportunities. One of the firms has just announced that it will pay a dividend, while the other has continued to pay no dividend. Which of the two firms is worth more? Explain.

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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