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    Practical Financial Management Study Set 1
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    Exam 15: Dividends and Repurchases
  5. Question
    The Dividend Irrelevance Hypothesis Argues That the Negative Impact on P<sub>0</sub>
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The Dividend Irrelevance Hypothesis Argues That the Negative Impact on P0

Question 44

Question 44

True/False

The dividend irrelevance hypothesis argues that the negative impact on P0 of reducing or eliminating early dividends is offset by the positive effect of larger dividends later on and an increased selling price.

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