1 under what circumstances would it make sense for a firm, Ask an Expert

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1. Under what circumstances would it make sense for a firm to borrow money to make its dividend payments?

2. Some people have suggested that it is irrational for a firm to pay dividends and sell new stock in the same year because the cost of newly issued equity is greater than the cost of retained earnings. Do you agree? Why or why not?

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Category:- Basic Finance
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