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When a firm re - invests cash flows into financing profitable projects instead of paying dividends, the equity holders... ( Only one answer ) Lose
When a firm reinvests cash flows into financing profitable projects instead of paying dividends, the equity holders... Only one answer
Lose wealth because they did not pick the project
Lose wealth because they do not receive dividends
Gain wealth because they have more voting rights
Are unaffected
Gain wealth because their ownership claim is now to a larger firm
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