Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 17.4, Problem 17.4BCQ
Summary Introduction

To discuss: The reason for non-individual investors who favor high dividend payouts

Introduction:

Reinvestments of low earnings in future periods are termed as high dividend payouts. This is another way to reduce the earnings from capital gains.

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Students have asked these similar questions
What are the advantages and disadvantages of higher dividends to investors?
Why might other investors prefer low-dividend-paying stocks?
Briefly explain why some individual investors might favour a high dividend payout.

Chapter 17 Solutions

Fundamentals of Corporate Finance

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