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Go to the home page of Cisco Systems, Inc. (http://www.cisco.com) and link to its financial reports page. Download the most recent annual report and observe the capital investment and dividend policies of Cisco Systems.

Now, do the same for Chevron (http://www.chevron.com). Which of the two firms appears to have more high-growth, positive-NPV investment opportunities?

Which pays the higher relative dividend? Do these results support the agency cost/contracting model? The signaling model?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92072000

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