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Assuming perfect market, for the same amount of payout, if a company pays less cash...

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Finance

Assuming perfect market, for the same amount of payout, if a company pays less cash dividend and repurchases more shares, then the following is valid:

a.

the expected rate of return of the equity is higher
b.

the expected rate of return of the equity is lower
c.

the equitys expected dividend yield is lower and expected capital gains yield is higher
d.

both a and c
e.

both b and c

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