In a World Without Taxes or Transaction Costs,it Can Be

question 31

Essay

In a world without taxes or transaction costs,it can be argued that dividend policy is irrelevant for shareholder value and cash flow.With a no-dividend policy,the current price is and will remain $100.00 per share.With a high-dividend policy,the current price is $100.00 per share and the value falls to $95 per share upon payment of the dividend.
Use the following example to demonstrate dividend policy irrelevance.

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Definitions:

New Rule

In software, a command to create a new instruction or condition, often used in context with formatting, filtering, or validating data.

Email Messages

Digital communications sent from one person to another or to a group through an electronic mail service.

Multiple Email Accounts

The capability to manage and use more than one email account from the same client or application interface.

Outlook

A Microsoft email and personal information management software used for communicating and organizing data.