In a frictionless world, there be differences in valuation between dividen paying and non-paying firms holding all else constant. In a world with adjustment period there be excess demand for payers or non-payers leading to differences i valuation. If investors value firms more highly with higher growth rates (holding all els constant); we would expect to see a premium on would expect to see an increase in relative valuation for (a) should not; might; non-payers; non-payers (b) should not; might; dividend payers; non-payers (c) should; might not; dividend payers; non-payers (d) should not; might; non-payers; dividend payers 5. In a frictionless world, there be differences in valuation between dividend paying and non-paying firms holding all else constant. In a world with adjustment periods, there be excess demand for payers or non-payers leading to differences in valuation. If investors value firms more highly with higher growth rates (holding all else constant); we would expect to see a premium on while if taxes decrease, we would expect to see an increase in relative valuation for (a) should not; might; non-payers; non-payers (b) should not; might; dividend payers; non-payers (c) should; might not; dividend payers; non-payers (d) should not; might; non-payers; dividend payers