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Explain the “Dividend Irrelevance” theory and the “Dividend Preference” theory of dividends. Which of these is...

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Finance

Explain the “Dividend Irrelevance” theory and the “DividendPreference” theory of dividends. Which of these is theoreticallythe most justified? Is there any real-world evidence that eitherone might be the most relevant? (7 pts.)

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The Dividend Irrelevance theory says that there is little impact on a companys stock price by its declaration and payment of dividends In other words the theory states that dividends do not add value to a companys stock price and investors do not need to    See Answer
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Explain the “Dividend Irrelevance” theory and the “DividendPreference” theory of dividends. Which of these is theoreticallythe most justified? Is there any real-world evidence that eitherone might be the most relevant? (7 pts.)

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