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PlayKids, a firm that operates play arenas for children, has paid $1 as a dividend per share each year for the last five years. Because
PlayKids, a firm that operates play arenas for children, has paid $1 as a dividend per share each year for the last five years. Because of a decline in revenues and increased competition, its earnings have plummeted this year. It substitutes a $1 stock dividend for the cash dividend. What would you expect the market reaction to the stock dividend to be? Why
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