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Suppose that investors expect Bank of Commerce stocks to give them an expected return of 12%. However, there is no legal requirement for Bank of
Suppose that investors expect Bank of Commerce stocks to give them an expected return of 12%. However, there is no legal requirement for Bank of Commerces managers to achieve that level of returns. They do not have to pay dividends, nor are they legally obligated to achieve certain level of dividend growth rate. Why do you think that managers still work to provide this level of expected returns for their investors?
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