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1) Consider the optimal growth equation. If a company consistently grows faster than its optimal growth rate: a) Does that mean equity is growing faster
1) Consider the optimal growth equation. If a company consistently grows faster than its optimal growth rate:
a) Does that mean equity is growing faster than under the optimal growth scenario?
b) If no, why not? If yes, isnt growing equity faster a good thing?
2) Why is lowering your dividend a way to help stimulate growth?
3) What kind of companies are more/less likely to issue a dividend? And why?
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