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3) Show the effects of the bird-in-the-hand and Tax preference dividend theories by drawing how the stock price (Po) and cost of equity (rs) changes,
3) Show the effects of the "bird-in-the-hand and Tax preference dividend theories by drawing how the stock price (Po) and cost of equity (rs) changes, for each theory, as the payout ratio increases? (4 Marks) Cost of Equity (%) Stock Price ($) Po 0 100 0 100 Payout ratio (%)
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