High (low) dividend firms should arise to meet the demands of dividend-preferring (capital gains preferring) investors. Because

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High (low) dividend firms should arise to meet the demands of dividend-preferring (capital gains–

preferring) investors. Because of these clienteles, it is not clear that a firm can create value by changing its dividend policy. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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