Reducing Dividends versus Share Issue Capital Raising

Number of Pages 16

In sixteen pages this paper presents an analysis of the observation 'The cost of retained earnings is less than the cost of new outside equity capital. Consequently, it is totally irrational for a firm to sell a new issue of shares and to pay cash dividends during the same year.' Twenty sources are listed in the bibliography.


File: TS14_TEshrdiv.rtf


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