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In: Accounting

Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment...

Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment and the resulting capital gains. What are the various trade-offs that companies face when trying to establish their optimal dividend policy. What's the difference between stock splits and stock dividends. What are the advantages and disadvantages of stock repurchases vis-à-vis dividends from both investors’ and companies’ perspectives.

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