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Brimfield Corp

Question 80

Multiple Choice

Brimfield Corp.has total cash available of $1 million,but decides to match last year's dividend payout of $1.5 million.If the company raises the extra $500,000 by selling shares,and all else being equal,the decision to pay out more than its available cash in dividends should


A) cause the share price to increase.
B) have no effect on the value of the shares.
C) cause the share price to decrease.
D) cause the share price to decrease if dividends per share increase.

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