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  3. Study Set
    Principles of Managerial Finance
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    Exam 14: Payout Policy
  5. Question
    As Per Dividend Relevance Theory, Current Dividend Payments Are Believed
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As Per Dividend Relevance Theory, Current Dividend Payments Are Believed

Question 45

Question 45

True/False

As per dividend relevance theory, current dividend payments are believed to reduce investor's uncertainty, thereby-all else being equal-placing a lower value on a firm's stock after its payment.

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