Quiz Ch 14 – T/F Bird-in-the-Hand Theory’s Implication on Dividend Yield and Growth

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: A consequence of the bird-in-the-hand theory of dividends is that if dividend yield decreases, it necessitates a growth increase surpassing the reduction in proportion to maintain a firm's constant required return, assuming other factors remain unchanged.

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