All Else the Same, an Investor Is Likely to Prefer

question 219

True/False

All else the same, an investor is likely to prefer a firm with a high dividend payout if the firm has
many positive NPV projects in which it could invest.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders.

Interest Rate Swap

A financial derivative contract in which two parties agree to exchange one stream of interest payments for another, based on a specified principal amount.

Fixed Rate

A fixed rate refers to an interest rate for a loan or mortgage that remains constant over the term of the loan.