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    Foundations of Finance
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    Exam 13: Dividend Policy and Internal Financing
  5. Question
    The Residual Dividend Theory Is Based on the Observation That
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The Residual Dividend Theory Is Based on the Observation That

Question 168

Question 168

True/False

The residual dividend theory is based on the observation that flotation costs make the cost of new common stock significantly higher than the cost of retained earnings.

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