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Ignoring the Idealized World of MM, Why Might a Higher

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Essay

Ignoring the idealized world of MM, why might a higher dividend payout ratio be considered detrimental to firm value?


Definitions:

First Mover Advantage

A competitive advantage gained by the first significant company to move into a new market or develop a new product or service.

High Price

A situation where the cost of a product or service is considered to be significantly above average or expected values.

Final Offer

The last proposal made in a negotiation, beyond which the offeror is unwilling to make further concessions.

Outside Options

Alternatives available to negotiating parties, especially if current negotiations fail, influencing their bargaining power.

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