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A firm's value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases

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A firm's value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases impact the firm's value and the investors in different ways. Consider the scenario, and answer the questions that follow Suppose a firm generates a lot of cash but has limited investment opportunities. Is this stock more likely to be a utility stock or a technology stock? In addition, is the stock more likely to have a high or low dividend yield? OA technology stock that has a high dividend yield A utility stock that has a low dividend yield A technology stock that has a low dividend yield A utility stock that has a high dividend yield Which of these statements is true? Taxes on dividends are paid when the stock is sold. Taxes on dividends are paid in the year that they are received. Consequently, the tax code encourages many individual investors to prefer A firm's value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases impect the firm's value and the investors in different ways Consider the scenario, and answer the questions that follow: Suppose a firm generates a lot of cash but has limited investment opportunities. Is this stock more fikely to be a utility stock or a technology stock? In addition, is the stock more likely to have a high or low dividend yleld? A technology stock that has a high dividend yield A ubility stock that has a low dividend yield A technology stock that has a low dividend yield A utility stock that has a high dividend yield Which of these statements is true? Taxes on dividends are paid when the stock is sold. dividends Taxes on dividends are paid in the year that they are received. capital gains Consequently, the tax code ancourages many individual investors to prefer

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