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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 Investors Prefer Firms That Retain Most of Their Earnings
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If Investors Prefer Firms That Retain Most of Their Earnings

Question 26

Question 26

True/False

If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.

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