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If sellers respond substantially to changes in the price, then:
Required Return
The expectancy of financial gain on an investment, considering its risk profile, set by investors as a benchmark.
Dividend Irrelevance Theory
A theory suggesting that dividend policy has no effect on a company's value or its stock price.
Firm's Value
The total monetary value of a company, typically assessed through metrics like market capitalization, enterprise value, or net asset value.
Cost of Capital
The rate of return that a company must earn on its project investments to maintain its market value and attract funds.
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