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Gordon's bird-in-the-hand argument suggests that dividends are irrelevant. firms should have a 100 percent payout policy. shareholders are generally risk averse and attach less risk

Gordon's "bird-in-the-hand" argument suggests that

dividends are irrelevant.

firms should have a 100 percent payout policy.

shareholders are generally risk averse and attach less risk to current dividends.

the market value of the firm is unaffected by dividend policy.

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