According to the bird-in-the-hand argument, current dividend payments reduce investor uncertainty and result in a higher value for the firm's stock.

Question

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The bird-in-the-hand argument suggests that investors prefer to receive current dividend payments rather than relying on future capital gains, which are uncertain. By paying dividends, a company provides investors with a tangible and immediate return on their investment, which reduces uncertainty and increases the perceived value of the stock. Therefore, current dividend payments can result in a higher value for the firm's stock, supporting the argument.

According to the Bird-In-The-Hand Argument, Current Dividend Payments Reduce Investor