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QUESTION

DIVIDEND POLICY AND HIGH-GROWTH FIRMS - High-growth firms are often encouraged to start paying dividends to expand their stockholder base, because

DIVIDEND POLICY AND HIGH-GROWTH FIRMS - High-growth firms are often encouraged

to start paying dividends to expand their stockholder base, because there are stockholders

who will not or cannot hold stock that do not pay dividends. Do you agree with this rationale?

Explain.

○ Yes.

○ No.

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