FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com - Page 177
Myron Gordon and John Lintner believe that the required return
on equity increases as the dividend payout ratio is decreased. Their
argument is based on the assumption that
Which of the following statements is correct?
Which of the following would be most likely to lead to a
decrease in a firm’s dividend payout ratio?