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explain the impact of dividend policy on shareprice
behaviour or pattern?
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Answer Posted / sidharth
it totally depend on the the firm:
1 growth firm -Company retain all reserve to invest in some other profitable project which ll maximise its shareholder wealth.and payout ratio 00%
2Decline firm - in this situation co's dividend payout ratio is 100% ,so that the shareholder dnt lose trust.
3Normal firm - in this they might do anything bcoz here R=k
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