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Positive NPV Projects Enhance Shareholder Wealth

question 250

Essay

Positive NPV projects enhance shareholder wealth. However, in some cases the payment of
dividends limits the number of positive NPV projects a firm can take. Why, then, shouldn't
shareholders prefer a residual dividend policy?


Definitions:

Technology for Training

The use of modern tools and platforms, such as e-learning software, virtual reality, or mobile apps, to facilitate training and learning processes.

Just-in-time Training

An educational strategy where training is provided to employees exactly when it is needed, often right before a task is to be performed.

System Maintenance

The process of regularly checking and repairing computer systems or parts of a system to ensure they run smoothly and efficiently.

Limit Its Liability

Refers to strategies or policies a company implements to minimize legal and financial responsibility due to accidents, errors, or negligence.

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