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Which of the following should not
influence a firm’s dividend policy decision?
If a firm adheres strictly to the residual dividend policy, then if
its optimal capital budget requires the use of all earnings for a given year
(along with new debt according to the optimal debt/total assets ratio),
then the firm should pay
You own 100 shares of Troll Brothers’ stock, which currently
sells for $120 a share. The company is contemplating a 2-for-1 stock
split. Which of the following best describes what your position will be
after such a split takes place?