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67. One of the implications of signaling theory for capital structure decisions is that firms should normally seek to maintain a reserve borrowing capacity. a.

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67. One of the implications of signaling theory for capital structure decisions is that firms should normally seek to maintain a reserve borrowing capacity. a. True b. False 68. The optimal dividend policy for a firm strikes a balance between payment of current dividends and retention of earnings for future growth, and results in the maximization of stock price. a. True b. False

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