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i need help solving these 2 questions showing explanations Firms are reluctant to decrease dividend amount because it is a bad earnings signal to the
i need help solving these 2 questions showing explanations
Firms are reluctant to decrease dividend amount because it is a bad earnings signal to the investors. Why are firms also reluctant to increase dividends? Question 5: True or False? If False, why? (a) According to the free cash flow hypothesis that has been proposed to explain investors' reactions to dividend policy changes, a firm should never distribute its free cash flows, because these funds represent money the firm is free to invest as it pleases (b) Dividend irrelevance theory asserts that there exists no optimal dividend policy Step by Step Solution
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