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The Directors of Rohan Plc are discussing the importance of the dividend policy on the market value of their firm. The Chairman considers that the dividend is important and does affect the company's market value. The Finance Director argued by saying that the dividend policy has no impact on the company's market value.
Required:
Create a report that fully explains both Directors' views. Include relevant empirical research to support both views.
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Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as to which portion of the profits is to be distributed as divi
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