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Which of the following behaviors is NOT an example of drive-reduction theory?
Flotation Cost
Flotation Cost refers to the costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.
Payout Ratio
The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage.
Dividend Growth Rate
An annualized percentage rate of growth of a company's dividend payments to shareholders, indicating the company's commitment to increasing shareholder value over time.
Component Costs of Capital
The individual expenses associated with the different sources of capital, such as the cost of equity, debt, and preferred stock.
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