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Let's say that a company has actually reformed relatively well long term and an investor has reformed research and has made a decision to invest in a dividend paying organization. However, instead of aying out an increased dividend amount giving investors option to place back what they received into the company, the decision is make for the company itself to retain the incremental earnings in order to take advantage of a long term investment opportunity. Why wouldn't this decision be received positively by shareholders? Wouldn't this add value to the firm?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91670015

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