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The decision whether to pay a dividend, and how much to pay, is a very important management decision. From 20022007, many companies substantially increased their

The decision whether to pay a dividend, and how much to pay, is a very important management decision. From 20022007, many companies substantially increased their dividends, and total dividends paid by U.S. companies hit record levels. What factors must management consider in deciding how large a dividend to pay?

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