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Why should a firm never give up a positive NPV project in order to pay a dividend? Multiple choice question. Increasing the cash dividend may
Why should a firm never give up a positive NPV project in order to pay a dividend? Multiple choice question. Increasing the cash dividend may be a positive NPV project. The firm should accept all positive NPV projects. Doing otherwise would destroy firm value. Using cash to increase dividends is irrelevant under the real world considerations. Dividends are always positive news for shareholders
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
