Different businesses have very different policies on the


Different businesses have very different policies on the payment of dividends and what that communicates to stockholders. Basically there are two ways to reward stockholders: 1) pay them via dividends and 2) pay them with capital appreciation of their stock. Explain why some firms would opt for one strategy yet other for the other approach. Provide examples of each.

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Financial Management: Different businesses have very different policies on the
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