Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 6CTCR
Summary Introduction

To discuss: The dividend policy becomes irrelevant in the area, where an increase in dividend increases the share price.

Introduction:

Dividend policy is the framework, which guides the management to take decisions on the distribution of earnings to the shareholders of the company.

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