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Shareholders preference for dividend versus capital gains can potentially influence a firm's payout policy. a. Explain what is meant by the term dividend policy and

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Shareholders preference for dividend versus capital gains can potentially influence a firm's payout policy. a. Explain what is meant by the term dividend policy and discuss the two main issues that can affect such policy. b. Discuss the key reasons why some investors prefer dividend. c. Discuss the key reasons why some investors prefer capital gains

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