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    Fundamentals of Financial Management Study Set 1
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    Exam 15: Distributions to Shareholders: Dividends and Share Repurchases
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    If a Firm Pays Out All of Its Earnings as Dividends
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If a Firm Pays Out All of Its Earnings as Dividends

Question 41

Question 41

True/False

If a firm pays out all of its earnings as dividends and its stockholders then elect to have all of their dividends reinvested,the company should reconsider its dividend policy and possibly move to a lower dividend payout ratio.

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