Describe three major theories regarding the way dividend

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Question 1: The terms "irrelevance," "dividend preference" (or "bird-in-the-hand"), and "tax effect" have been used to describe three major theories regarding the way dividend payouts affect a firm's value. Explain these terms, and briefly describe each theory.

Question 2: What do the three theories indicate regarding the actions management should take with respect to dividend payouts?

Reference no: EM132566471

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