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The manager of XYZ Corporation feels that a dividend increase will increase the stock price because many investors value stock with a dividend-discount model. Why
The manager of XYZ Corporation feels that a dividend increase will increase the stock price because many investors value stock with a dividend-discount model. Why might MM disagree with this assertion? Multiple Choice The increased dividend makes the firm much riskier. If investment policy remains unchanged, the company must replace the cash with a stock issue. Investors prefer capital gains over dividends. Dividend increases will increase the book value but not the market value of the firm
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