For any firm's given growth strategy, its dividend decision directly affects its capital structure decision.

Name: For any firm's given growth strategy, its dividend decision directly affects its capital structure decision.
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Question

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Dividend decision affects the firm's cash flows and, therefore, its ability to finance its growth strategy. This, in turn, affects the firm's capital structure decision as it may need to raise external financing through debt or equity to fund its growth.

For Any Firm's Given Growth Strategy, Its Dividend Decision Directly