It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. Explain the logic behind this conclusion. Next,describe three real-world factors that may cause one dividend policy to be preferable to another.

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The Answer of It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. Explain the logic behind this conclusion. Next,describe three real-world factors that may cause one dividend policy to be preferable to another.

It Has Been Shown That in the Absence of Taxes