If Indra intends to be a shareholder in the company over the long term, why is it that you may not have as sharp a preference for receiving dividends as compared to a shareholder who may be invested in the company for a much shorter time frame?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 14Q: Your friend has questions about retained earnings and dividends. How do you explain to him that...
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If Indra intends to be a shareholder in the company over the long term, why is it that you may not have as sharp a preference for receiving dividends as compared to a shareholder who may be invested in the company for a much shorter time frame?

 

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