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4 When investors prefer to have the firm reinvest earnings rather than pay them out in dividends if the rate of return the firm can

4 When investors prefer to have the firm reinvest earnings rather than pay them out in dividends if the rate of return the firm can earn on reinvested earnings exceeds the rate investors, on average, can themselves obtain, is the basis of

a. dividend irrelevance

b. bird in hand

c. information content

d clientele

e residual dividend policy

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