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Microsoft announced huge profits and its first-ever dividend, but its stock price dropped. Why? A. Investors value free cash flows and not dividends B. Paying
Microsoft announced huge profits and its first-ever dividend, but its stock price dropped. Why?
A. | Investors value free cash flows and not dividends | |
B. | Paying a dividend increases Microsoft's cost of capital | |
C. | The dividend was viewed as a negative signal about Microsoft's expected growth rate | |
D. | None of the above. Investors were being totally irrational |
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