A Firm's Dividend Payout Decision Has a Major Effect on the Value

question 95

True/False

A firm's dividend payout decision has a major effect on the value of the firm in the absence of tax.

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Definitions:

Excludable

Describes a good or service for which it is possible to prevent non-paying customers from accessing it.

Marginal Social Benefit

The extra advantage that the entire society gains from using an additional unit of a product or service.

Public Good

A product that is non-excludable and non-rivalrous in consumption, meaning it is available to all members of society without depletion.

Nonrival

Refers to a good where one person's use does not reduce the amount available for others.