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1 pts Question 7 Myron Gordon and John Lintner believe that the required return on equity, rs, decreases as a company's dividend payout is increased.

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1 pts Question 7 Myron Gordon and John Lintner believe that the required return on equity, rs, decreases as a company's dividend payout is increased. Their argument is based on the assumption that capital gains are taxed at a higher rate than dividends. investors are indifferent between dividends and capital gains. investors view dividends as being less risky than potential future capital gains. o investors require that the dividend yield plus the capital gains yield equal a constant rate

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