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Which one of the following is a drawback of cash dividends? Firms may have to obtain additional external financing which would not be required in
Which one of the following is a drawback of cash dividends?
Firms may have to obtain additional external financing which would not be required in the absence of the dividends.
Stock prices tend to increase as annual dividend amounts increase.
Cash dividends support stock prices.
Dividends tend to lower agency costs.
Dividend-paying firms tend to attract a wider field of investors than do non-dividend-paying firms.
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