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How may a reduction in cash dividends be in the best interests of current shareholders? a . dividends are taxed at twice the rate of
How may a reduction in cash dividends be in the best interests of current shareholders?
a dividends are taxed at twice the rate of other gains.
b the firm will have available cash to increase current investment and future profits.
c reduced dividends increase managerial compensation, thus increasing their motivation.
d a reduction of cash dividends cannot be in the best interests of current shareholders.
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