Examlex
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Bird in the Hand Theory
A theory that suggests investors prefer the certainty of dividend payments to the possibility of much higher future capital gains.
Dividend Distribution
The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.
Retaining Earnings
Profits kept by a company for reinvestment in its operations rather than distributed to shareholders as dividends.
Residual Dividend
A policy whereby dividends are based on earnings after all projects with positive NPV are funded.
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