Answered: The optimal distribution strategy…

The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company. true or false

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 2QE

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Question

The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company.

true or false

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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