4. Patriot Games has 5 million shares outstanding. The president has proposed that, given the firms large

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4. Patriot Games has 5 million shares outstanding. The president has proposed that, given the firm’s large cash holdings, the annual dividend should be increased from $6.00 a share to

$8.00. If you agree with the president’s plans for investment and capital structure, what else must the company do as a consequence of the dividend increase?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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