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10 May, 05:31

The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm's stock price. True / False.

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  1. 10 May, 08:15
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    Answer:TRUE

    Explanation: Is the distribution policy that maximizes the value of the firm by choosing the optimal level and distributions system for its dividends and stock repurchases). Most firm try to achieve the optimal distribution policy necessary for it to maximize its stock price for guarantee good returns or good profit on its investment.
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