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High dividends may increase a stocks value due to all of the following EXCEPT Dividends are more certain that capital gains. Higher dividends are used

  1. High dividends may increase a stocks value due to all of the following EXCEPT
    1. Dividends are more certain that capital gains.
    2. Higher dividends are used to signal expectations of higher future earnings.
    3. Dividends are used as a tool to minimize agency costs.
    4. Higher dividends allow corporations to increase their proportion of external equity financing.

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