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Sampson Ltd has not issued any new debt securities in 10 years. It will begin paying cash dividends to its shareholders for the first time

Sampson Ltd has not issued any new debt securities in 10 years. It will begin paying cash dividends to its shareholders for the first time next year. Explain how a dividend might help the company get closer to its optimal capital structure of 50 per cent debt and 50 per cent equity.

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