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His proposition clearly claims the partnership between your firms’ (i) internal rates from return (we

His proposition clearly claims the partnership between your firms’ (i) internal rates from return (we

Which is, to phrase it differently, an optimum dividend policy will need to be determined by new dating from r and k

M-Meters theory takes on you to taxes don’t can be found, in reality, it is impossible. On the other hand, the new investors have to pay taxation on the dividend thus received or on the investment progress. We understand one to other income tax pricing can be applied so you can bonus and you may financial support development and you will tax speed into funding increases was comparatively low than the taxation speed for the bonus.