Business Studies, asked by nagmasaifi2281, 1 year ago

Difference between relevance and irrelevance theories of dividends

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Answered by Anonymous
2
There are no taxes:- No difference between tax rates on dividends and capital gains. 3. The firm has a fixed investment policy which will not change. ... Hence, the division of earnings between dividends and retained earnings is irrelevant from the point of view of shareholders.
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