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    How is the distribution of dividend yield influenced by firm

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    Owning common stock. Would you expect the distribution between dividend yield and capital gains to be influenced by the firm's decision to pay more dividends rather than to retain and reinvest more of its earnings?

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    Yes, because the calculation for dividend yield is calculated from dividend paid divided by the price of the common stock. If the firm decides to pay ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer whether you would expect the distribution between dividend yield and capital gains to be influenced by the firm's decision to pay more dividends rather than to retain and reinvest more of its earnings.

    $2.19

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