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    Financial Management Theory and Practice Study Set 4
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    Exam 14: Distributions to Shareholders: Dividends and Repurchases
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    If Management Wants to Maximize Its Stock Price, and If
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If Management Wants to Maximize Its Stock Price, and If

Question 35

Question 35

True/False

If management wants to maximize its stock price, and if it believes that the dividend irrelevance theory is correct, then it must adhere to the residual distribution policy.

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