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Over the past three decades about half of the public firms were regular dividend payers, while the other half were not paying dividends at all.

Over the past three decades about half of the public firms were regular dividend payers, while the other half were not paying dividends at all. Assuming wealth maximization of shareholders is a primary objective of the management, give at least three possible explanations why it might be optimal to pay dividends; at least three reasons when it might not be optimal to pay dividends.

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