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Explain the underlying reasoning for the following propositions in the context of company dividend policy: i. Dividend policy is irrelevant to a firm's value'. (5

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Explain the underlying reasoning for the following propositions in the context of company dividend policy: i. Dividend policy is irrelevant to a firm's value'. (5 marks) ii. Dividend policy is strongly affected by tax rates on income and capital gains'. (10 marks) iii. Dividend stability and signaling are valued by many investors

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