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All else the same, a low dividend payout is likely to be preferred by a firm's investor: If flotation costs are significant. If marginal corporate
All else the same, a low dividend payout is likely to be preferred by a firm's investor:
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If flotation costs are significant.
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If marginal corporate tax rates exceed marginal personal tax rates.
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If the investor has a need for current income.
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If the investor is tax-exempt.
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If the firm doesn't have any positive NPV projects in which it could invest.
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