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Goodwin has been very successful, but it hasn t paid a dividend yet. It circulates a report to its key investors containing the following statement:
Goodwin has been very successful, but it hasnt paid a dividend yet. It circulates a report to its key investors containing the following statement:
Investors prefer the deferred tax liability that capital gains offer over dividends.
Is this statement a possible explanation for why the firm hasnt paid a dividend yet?
Yes
No
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