A fundamental issue of dividend policy is whether stockholders prefer dividend income or capital gains.
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Q126: The clientele effect supports the treatment of
Q127: Under dividend aversion investors prefer future capital
Q128: Indentures and covenants on borrowing restrict the
Q129: Retained earnings should be used to provide
Q130: The clientele effect implies that firms must
Q132: A target payout ratio policy involves choosing
Q133: The concept of signaling suggests that a
Q134: The fact that dividends are discretionary means
Q135: If a firm has missed one or
Q136: An increase in a firm's payout ratio
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